ASC 606: Revenue from Contracts with Customers
The existing rules on revenue recognition under US GAAP are based on multiple sources with a myriad of industry-specific guidance. The new standard is principles based which could cause significant changes for US GAAP
preparers. We will go through the new standard as to what guidance will be provided in future.
The 5-step model for revenuerecognition
Identifying the contract and combining contracts
The performance obligation (PO) approach – identifying and satisfying the PO over time and at a point in time
Allocation of the transaction price to performance obligations on contracts with multiple deliverables and what is changing from existing US GAAP.
The significant disclosure requirements of ASC 606.
Implementation and transition issues.
The expected changes in US GAAP relating to classification and measurement, and hedging and the new impairment model
A major criticism of the current accounting regulation of leasing is that it is possible to engage in offbalance sheet financing with operating leases. We will go through the new accounting landscape for leases with examples and discuss why off-balance sheet financing will become more difficult and compare the new exposure draft with the existing rules under US GAAP.
Valuation of inventories and classification of taxes
Business combinations and the measurement date requirements
Loan issue costs
Oher issues as they arise
Recent FASB and SEC Developments
An update on guidance changes forthcoming under SEC rules or asissued by the FASB
We also offer online training. Participants will receive a link to a web site where real-time training is issued.