FASB's New Revenue Recognition Standard ASC 606
Wednesday, June 12, 2019
The new FASB 606 on revenue recognition supersedes nearly all current revenue recognition provisions, including industry-specific guidance and replaces it with a more principles-based approach, which is not a five step process. This is mark-ably different than the all-events test used for tax purposes. The new standard is effective January 1, 2018 for public companies and January 1, 2019 for private companies - That's right around the corner! Now is the time to dig in and start getting up to speed on these critically important issues.
* Apply the new financial accounting concepts in the revenue recognition setting
* Gain a working knowledge of accounting rules as they relate to revenue recognition
* Discuss planning and potential pitfalls.
* Identify the contract(s) with a customer
* Identify the performance obligations in the contract
* Determine the transaction price
* Allocate the transaction price to the performance obligations
* Recognize revenue as the business satisfies a performance obligation