RERE
REVENUE RECOGNITION: A NEW DAY IS DAWNING

Even though FASB has decided to push the required effective date of ASU No. 2014-09 back one year, the new revenue recognition standard can be in effect as early as fiscal years beginning after December 15, 2016 for any entity that wants to continue to implement under the original timeline. The changes to revenue recognition are extensive and the new accounting guidance applies to all companies, so it is imperative that all businesses get up to speed on the impact of the new rules well in advance of the date of transition. The deferred effective date was granted to allow entities more time to prepare for implementation. Companies will need to make sure that their operational, compliance, and financial reporting systems are all ready for the change. Revenue recognition changes could impact wording in contracts, tax planning strategies, budgets, forecasts, debt covenant compliance, incentive compensation plans, and so much more. This program will provide participants with practical guidance about how to work with the new concepts and principles that are in the new standard. Plenty of specific examples will be provided to compare and contrast the proper accounting for specific transactions under both the current and new requirements. The ultimate goal of this course is to provide implementation guidance to assist entities with evaluating the impact of the new standard on financial reporting, but also to identify resulting changes necessary in other aspects of the business.

Major Topics:

  • Detailed analysis of current requirements of ASU 2009-13, Revenue Recognition with Multiple Deliverables, in order to have a foundation for understanding the impact of ASU 2014-09
  • Detailed analysis of ASU 2014-09, Revenue from Contracts with Customers, with emphasis on the five-step framework
    • Identify the contract with the customer
    • Identify the contracts performance obligations
    • Determine the transaction price
    • Allocate the transaction price to the separate performance obligations
    • Recognize revenue as the company satisfies a performance obligation
  • Implementation guidance for sample transactions

Learning Objectives:

  • Understand how the implementation of a more economic approach to revenue recognition changes will impact accounting processes and reported results for companies
  • Understand the new revenue recognition standard and its impact on financial statements
  • Determine the impact of the new standard on specific example scenarios

Designed For: Accountants and auditors who need to "get up to speed" on the changes in revenue recognition; Controllers responsible for a unit's financial statements; Accounting managers responsible for preparing financial statements; Finance staff who want a review of how financial statements will change under the existing and new guidance for revenue recognition
Level of Knowledge: Basic
Prerequisite: Basic understanding of current revenue recognition guidance
Advanced Preparation: None
Credits: 8
Field of Study: Accounting(8)
CFP Credit: No




Live Seminar Course Schedule

Back