ASC 606 in Practice: Applying the Contract Identification Requirements 1.5 CPE

Note: This course title has been enhanced from what you will see on the first screen of the recording.  The enhancement was for purposes of allowing the audience to have a better understanding of the content.  The course information did not change only the course name updated.

This course is dedicated to Step One of the new revenue recognition model “Identify the Contract”.  Previous courses have outlined each of the individual five steps of the model and provided case examples.  We have also developed two broad case study courses that cover scenario examples for each of the five steps.

In order to focus directly on aspects within each step, we are creating individual courses with multiple case scenarios that apply to the individual given steps.  This course applies to Step One – Identify the Contract.  The course includes the many components that must be considered for a contract to be in place and enforceable. We also review case scenarios that cover contract modifications and practices, contract combinations and other elements included in Step One.

After taking this course, you should be able to effectively apply your understanding of Step One of the revenue recognition model to specific scenarios within your business.  Each learning objective listed utilizes multiple examples from various industries to help interpret and practice the concept.

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Resources Consulted: • ASC 606-10-32-15 to 32-20, 55-244 to 55-246. • ASU 2014-09: “Revenue from Contracts with Customers.” BC229-BC247. • Croner-I, “A14 Revenue from Contracts with Customers.” (2019). Section 7.4.2-2 and 7.4.2-2. • FASB, ”Revenue Recognition Implementation Q&As.” January 2020). Questions 31-37. • FASB TRG Memo 20: “Significant Financing Components.” 26 January 2015. • FASB TRG Memo 30: “Significant Financing Components.” 30 March 2015. • EY, Financial Reporting Developments: “Revenue from contracts with customers.”January 2020. Section 5.5. • KPMG, Handbook: “Revenue Recognition.”December 2019. Section 5.5. • PWC, “Revenue from contracts with customers”March 2020. Section 4.4. • https://www.revenuehub.org/

Prerequisites

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Learning Objective

• Explore scenarios for Identify the Contract.
• Explore scenarios for contract existence.
• Explore scenarios for contract modifications.
• Explore scenarios for unpriced change orders.
• Explore scenarios for modifications applying the cumulative catch-up method.
• Explore scenarios for contract combinations.

Last updated/reviewed: March 24, 2024