Revenue Recognition Deep Dive - Unlocking the Key Principles of ASC 606 (Course Id 2492)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), including CPAs, accountants, and professionals seeking to enhance their understanding of revenue recognition under ASC 606.

• What is this course about or what problem does this course solve?
  The course provides a deep dive into the principles of revenue recognition under ASC 606, helping professionals understand and apply the five-step revenue recognition model, including contract identification, transaction price allocation, and performance obligations.

• How can the knowledge from this course be used?
  Learners can apply the knowledge gained to correctly recognize revenue in accordance with ASC 606, present contract assets and liabilities properly, and meet disclosure requirements in financial statements.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding ASC 606 is critical for accurate financial reporting, and this course equips professionals with the knowledge to comply with complex revenue recognition standards and avoid common pitfalls.

• When is this course relevant or timely?
  This course is especially relevant for 2025 and beyond, as it provides updated content on current challenges and best practices related to ASC 606 implementation.

• How is a course like this consumed or used?
  This is a QAS Self Study course that is text-based, requiring participants to study the material and complete a final exam with a passing score of 70% to earn 4.0 CPE credits.

This course provides a comprehensive overview of the revenue recognition principles under ASC 606. It covers the five-step model for recognizing revenue, which includes identifying contracts, measuring transaction prices, and allocating those prices to performance obligations. Participants will gain an understanding of key considerations, such as when a contract exists and how to measure the transaction price accurately. The course also explores the presentation of contract assets and liabilities, along with the required disclosures.    

NASBA QAS - Text - NASBA Registry - 2492

Course Learning Objectives

• 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
• Identify presentation issues with respect to contract assets and contract liabilities
• Understand the overall disclosure requirements
• Recognize top challenges companies face when recording revenue

Chapter 1 - Revenue Recognition Deep Dive - Unlocking the Key Principles of ASC 606

Course Learning Objectives

Course Overview

Introduction

Scope of ASC 606

The Main Provisions

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

Review Questions

Step 2: Identify the Performance Obligations in the Contract

Step 3: Determine the Transaction Price

Step 4: Allocate Transaction Price to Performance Obligations

Review Questions

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

Principal vs. Agent Considerations

Financial Statement Presentation Issues

Financial Statement Disclosures

Revenue Recognition Challenges

Conclusion

Review Questions

Glossary of Key Terms