ASC 606 Insights: Timing of Revenue Recognition and Principal vs. Agent Considerations (Course Id 2417)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, and financial professionals involved in revenue recognition and compliance with ASC 606.

• What is this course about or what problem does this course solve?
  The course addresses the complex challenges of revenue recognition under ASC 606, specifically focusing on when revenue should be recognized over time versus at a point in time, and how to determine whether an entity is acting as a principal or an agent in a transaction.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to accurately assess and document revenue recognition practices, improve compliance with ASC 606, and enhance financial reporting accuracy by correctly identifying control transfer timing and principal-agent roles.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding these ASC 606 considerations is essential for ensuring compliance with accounting standards, avoiding misstatements in financial reporting, and supporting ethical and professional responsibilities in financial practice.

• When is this course relevant or timely?
  This course is particularly timely for professionals working with entities subject to ASC 606 who must stay current with the latest interpretations and best practices in revenue recognition, especially given its recent 2024 release.

• How is a course like this consumed or used?
  The course is delivered as a NASBA QAS-approved self-study text-based format, completed online with review questions and a final exam that must be passed within one year of purchase to earn 2.0 CPE credits.

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 distinguishing between recognizing revenue over time versus at a point in time as well as  principal versus agent considerations.

NASBA QAS - Text - NASBA Registry - 2417

Chapter 1
Recognizing Revenue Over Time vs. Point in Time

• Identify factors that influence the determination of control transfer in a contract
• Recognize implications of transferring control over time versus at a specific point in time
• Distinguish between obligations that satisfy control transfer over time vs. at a point in time
• Determine the significance of contract terms in assessing when control transfers to a customer

Chapter 2
Principal vs. Agent Considerations

• Identify key factors that determine whether an entity acts as a principal or an agent
• Recognize the impact of principal vs. agent classifications on revenue recognition
• Determine steps for accurately assessing principal and agent roles in revenue transactions
• Recognize best practices for conducting principal vs. agent evaluations

Chapter 1 - Recognizing Revenue Over Time vs. Point in Time

Chapter Overview

Learning Objectives

Introduction

Point in Time vs. Over Time

Satisfied Over Time

Measuring Progress

Output Methods

Input Methods

Satisfied At a Point in Time

Conclusion

Review Questions

Chapter 2 - Principal vs. Agent Considerations

Chapter Overview

Learning Objectives

Introduction

Scope

Principal

Agent

Applicable Framework

Best Practices for Assessment

Case Studies

Conclusion

Review Questions

Glossary of Key Terms