Revenue Recognition and Leasing - Essential Concepts for Financial Professionals (Course Id 2533)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and other financial professionals seeking to deepen their understanding of revenue recognition and lease accounting.

• What is this course about or what problem does this course solve?
  The course addresses the complex principles of revenue recognition under ASC 606 and lease accounting under ASC 842, providing clarity on key concepts, procedures, and standards.

• How can the knowledge from this course be used?
  Learners can apply the five-step revenue recognition model and lease accounting principles to accurately classify, measure, and disclose transactions in compliance with U.S. GAAP.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Mastery of ASC 606 and ASC 842 is essential for financial reporting accuracy and regulatory compliance, making this course critical for maintaining professional competency.

• When is this course relevant or timely?
  With the latest revision dated April 14, 2025, and content aligned with current U.S. GAAP standards, this course is up-to-date and relevant for current accounting practices.

• How is a course like this consumed or used?
  The course is delivered via QAS Self Study, allowing professionals to complete it at their own pace through a comprehensive text, review questions, and a final exam.

This course combines an in-depth overview of revenue recognition principles under ASC 606 with a comprehensive guide to lease accounting standards under ASC 842. It covers the five-step model for recognizing revenue, including contract identification, transaction price measurement, and allocation to performance obligations. Additionally, it provides insights into lease identification, classification, initial and subsequent measurement, and the presentation and disclosure requirements for leases. Together, these topics equip financial professionals with the knowledge needed to navigate two critical areas of U.S. GAAP.

NASBA QAS - Text - NASBA Registry - 2533

Chapter 1
Revenue Recognition

• List the five steps involved in the revenue recognition model
• Recognize the considerations involved in identifying whether a contract exists
• Identify the considerations involved with measuring the transaction price
• Recognize the steps involved in allocating the transaction price to performance obligations

Chapter 2
Lease Transactions

• Determine whether an arrangement contains a lease as well as how to classify that lease
• Recognize the recognition and measurement requirements for both lessees and lessors
• Identify the classification criteria for sales-type, direct financing, and operating leases
• Identify the overall requirements for lease modifications
• Recognize the criteria used for sale and leaseback transactions
• Identify the presentation requirements for both lessees and lessors

Chapter 1 - Revenue Recognition

Learning Objectives

Chapter Overview

Introduction

Step 1: Identify the Contract(s) with a Customer

Step 2: Identify the Performance Obligations in the Contract

Review Questions

Step 3: Determine the Transaction Price

Step 4: Allocate Transaction Price to Performance Obligations

Step 5: Recognize Revenue When (or as) Performance Obligations are Satisfied

Conclusion

Review Questions

Chapter 2 - Lease Transactions

Learning Objectives

Chapter Overview

Introduction

Scope

Lease Determination

Lessee Lease Classification

Recognition and Measurement

Review Questions

Subsequent Measurement

Illustrative Example – Lessee Accounting

Lessor Accounting

Lease Modifications

Sale and Leaseback Transactions

Review Questions

Financial Statement Presentation Requirements

Disclosure Requirements

Top Challenges in ASC 842

Conclusion

Review Questions

Glossary of Key Terms