For years, revenue recognition has been the cause of audit failures and the focus of corporate abuse and fraud allegations. Today, there is FASB ASC 606, a new standard which is critical to understand before it can be successfully implemented. Supported by practical examples, industry specific real-life scenarios, and more than a dozen exercises, this work will assist you in avoiding revenue recognition traps and provide you with the latest FASB guidance. You will gain an in-depth understanding of the revenue recognition framework that is built around the core principles of this new five-step process. In addition, you will gain a better understanding of the changes in disclosure requirements.
Key topics covered include:
- Background, purpose, and main provisions of new standard (FASB ASC 606)
- Transition guidance
- Five-step process for recognizing revenue
- Disclosure requirements
- Implementation guidance - contracts, tax matters, internal controls, IT
Table of Contents
Chapter 1 1-1
Revenue Recognition -The Need for Change 1-1
Chapter 2 2-1
Identifying The Contract With a Customer 2-1
Chapter 3 3-1
Identifying The Performance Obligations in the Contract 3-1
Chapter 4 4-1
Determining the Transaction Price 4-1
Chapter 5 5-1
Allocating the Transaction Price to the Performance Obligations in the Contract 5-1
Chapter 6 6-1
Recognizing Revenue When a Performance Obligation Has been Satisfied 6-1
Chapter 7 7-1
Special Considerations Under FASB ASC 606 7-1
Chapter 8 8-1
Presentation and Disclosure Requirements Under FASB ASC 606 8-1
Chapter 9 9-1
Transition Guidance and Available Resources 9-1
Appendix A Chapter 9, A-1
Revenue Recognition Task Force Status of Implementation Issues Chapter 9, A-1
Chapter 10 10-1
A Comparison between IFRS and US GAAP 10-1
Glossary Glossary 1
Index Index 1
Solutions Solutions 1
Chapter 1 Solutions 1
Chapter 2 Solutions 2
Chapter 3 Solutions 6
Chapter 4 Solutions 9
Chapter 5 Solutions 14
Chapter 6 Solutions 17
Chapter 7 Solutions 21
Chapter 8 Solutions 23
Chapter 9 Solutions 25
Chapter 10 Solutions 27
