ASC 606 Insights: Licensing Revenue and Financial Statement Disclosures (Course Id 2415)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals who work with revenue recognition under ASC 606.

• What is this course about or what problem does this course solve?
  The course addresses critical challenges in applying ASC 606, focusing specifically on licensing revenue and financial statement disclosures to help professionals navigate complex recognition criteria.

• How can the knowledge from this course be used?
  Learners can apply the knowledge to accurately determine revenue recognition for licensing agreements and ensure compliance with ASC 606 financial statement disclosure requirements.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It helps professionals understand and implement ASC 606 standards correctly, which is essential for financial reporting accuracy and regulatory compliance.

• When is this course relevant or timely?
  The course is especially relevant now, as it was recently revised in November 2024 and addresses ongoing challenges with ASC 606 implementation.

• How is a course like this consumed or used?
  The course is delivered as a QAS Self Study text-based module, allowing participants to learn at their own pace and complete a final exam to earn CPE credit.

This course provides an overview of critical challenges companies encounter under ASC 606, emphasizing several key areas that can be particularly challenging for effective revenue recognition. This includes licensing arrangements, with an emphasis on how to recognize revenue from agreements that grant customers rights to use or access intellectual property. This course also addresses the requirements and challenges with respect to financial statement disclosures.  

NASBA QAS - Text - NASBA Registry - 2415

Chapter 1
Licensing Arrangements and Intellectual Property

• Identify criteria for determining whether a license is distinct under ASC 606
• Distinguish between licenses that grant a right to use IP and those that grant a right to access IP
• Recognize the differences between functional and symbolic intellectual property IP
• Determine when revenue should be recognized for licenses involving functional IP
• Select the appropriate revenue recognition method for licenses that provide access to evolving IP

Chapter 2
Financial Statement Disclosures

• Identify key financial statement disclosure requirements under ASC 606 for revenue recognition
• Recognize required disclosures about contract nature and revenue policies
• Identify the timing of revenue recognition disclosures based on ASC 606 guidelines

Chapter 1 - Licensing Arrangements and Intellectual Property

Chapter Overview

Learning Objectives

Introduction

Is the License Distinct

License is NOT Distinct

License is Distinct

Nature of License

License Renewals

Case Study

Conclusion

Review Questions

Chapter 2 - Financial Statement Disclosures

Chapter Overview

Learning Objectives

Introduction

Revenue Recognition Disclosures

Contracts with Customers

Significant Judgments

Assets Recognized from Costs to Obtain or Fulfill a Contract

Ensuring Completeness

Best Practices

Practices to Avoid

Conclusion

Review Questions

Glossary of Key Terms