Revenue Recognition - U.S. GAAP vs. IFRS (Course Id 1930)

• Who is this course for?
  It’s intended for anyone needing Continuing Professional Education (CPE), especially accounting professionals like CPAs.

• What is this course about or what problem does this course solve?
  The course gives an overview of similarities and key differences between U.S. GAAP (ASC Topic 606) and IFRS (IFRS 15) revenue recognition standards—clarifying their converged model and where important distinctions still exist.

• How can the knowledge from this course be used?
  Learners can apply this understanding to accurately interpret and apply revenue recognition rules in both U.S. GAAP and IFRS frameworks, enhancing compliance and financial reporting consistency.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It equips practitioners with insight into two major global standards, aiding in cross-border accounting, audit preparedness, and ensuring accurate application of revenue rules.

• When is this course relevant or timely?
  Released in 2021 and revised on March 1, 2024, the course reflects current standards and is especially timely for professionals staying up-to-date with converged revenue recognition frameworks.

• How is a course like this consumed or used?
  It is delivered via NASBA QAS self-study in text format, covering 13 pages of material, including 3 review questions and a 5-question final exam, for 1.0 CPE credit.

This course provides an overview of the similarities and key differences between the revenue recognition standards issued by the FASB (ASC Topic 606) and the IASB (IFRS 15).  While these standards are materially similar as the regulators worked jointly to issue the new converged standards, there are notable differences that are good to understand.  However, this course is not intended to provide an exhaustive discussion of these differences.

NASBA QAS - Text - NASBA Registry - 1930

Course Learning Objectives

• List the key steps in the revenue recognition model
• Recognize the applicable U.S. GAAP and IFRS standard with respect to revenue recognition
• Identify some of the key differences between ASC Topic 606 and IFRS 15

Chapter 1 - Revenue Recognition - U.S. GAAP vs. IFRS

Course Learning Objectives

Course Overview

U.S. GAAP vs. IFRS – Why is it Important?

U.S. GAAP vs. IFRS – Overall Differences & Similarities

Revenue Recognition – Introduction

Revenue Recognition – Key Principles

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

Assessing Collectibility

Step 2: Identify the Performance Obligations in the Contract

Shipping and Handling

Review Questions

Step 3: Determine the Transaction Price

Noncash Consideration

Presentation of Sales Taxes

Step 4: Allocate Transaction Price to Performance Obligations

Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation

Other Areas of Difference

Impairment Reversal of Capitalized Contract Costs

Intellectual Property Licensing

Interim Disclosures

Other Key Differences

Review Questions

Glossary of Key Terms