Revenue Recognition Topic 606 - Identify Performance Obligations Part 2

Overview

Properly identifying performance obligations is a critical step in the five-step revenue recognition model. It is a step that must be completed at the inception of the contract and prior to moving on to step three of the model. As discussed in segment one on performance obligations, there are many types and variations of obligations and as such, management will be required to utilize significant judgment when applying this step. However,  it is important that the judgment be supported by considerations of the proper factors.

The course further evaluates areas that impact performance obligations. We utilize multiple examples from various industries to illustrate the considerations that must be evaluated in line with both identifying performance obligations and allocating the transaction price appropriately.  
 

Highlights

• Revenue Recognition
• Accounting

Prerequisites

Suggested- Revenue Recognition Topic 606 - Identify Performance Obligations Part 1

Designed For

Accountants, Finance Professionals, Auditors, Internal Auditors

Objectives

Explore the concept of revenue recognition related to performance obligations that may involve components such as:

• Options to purchase additional goods/services
• Identifying material rights
• Shipping and handling charges

Identify and examine factors impacting performance obligations including:

• Principal vs. agent status
• Warranties
• Options for additional goods and services
• Non-refundable up-front fees
• Stand-ready obligations
• Rights of returns

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.