SEC Institute
register for SEC Courses

(800) 529-1550

Revenue Recognition In Depth Workshop

CPE Credits: 12 Program Level: Intermediate Prerequisites: None

Objective: By using lecture, examples and case studies, this workshop will give participants an understanding on how to apply the FASB and SEC pronouncements on revenue recognition.

  • Master the principles and application of the GAAP literature for revenue recognition, including the SEC’s Staff Accounting Bulletin guidance in Topic 13 (SAB 104)

  • Review the FASB’s and IASB’s revenue recognition projects and the major changes in store

  • Learn and apply Multiple Element Revenue Recognition principles, including the revised guidance in ASC 605 (originally EITF 08-1)

  • Learn the principles and methods for software revenue recognition and the changes in scope for hardware versus software in ASC 985 (originally EITF 09-3)
  • Review the requirements for using percentage-of-completion accounting
  • Survey other revenue recognition guidance recently compiled in the FASB codification, including the milestone method
  • Solve case problems to deepen your understanding of principles and application
Date City Register
Apr 26 - 27, 2012 Las Vegas, NV Register

Agenda

Day 1
8:30 - 9:00 a.m. Registration and Continental Breakfast
9:00 am - 9:10 a.m. Workshop Overview
  • Schedule and learning objectives
  • Administrative details
  • Introductions
9:10 - 9:45 a.m. Foundations for Revenue Recognition Guidance in US GAAP
  • What are the key issues in revenue recognition across industries and sectors
  • What are the issues in software revenue recognition?
  • Principles - the overall approach in US GAAP
  • The FASB’s Conceptual Framework
  • Preview of future directions in FASB’s and IASB’s Revenue Recognition Projects
9:45 -10:30 a.m. Current Literature for Revenue Recognition – Section One
  • Review of Codification sections -  the multitude of areas addressed!
  • Which industries have specific guidance?
  • Software revenue recognition guidance
  • What is generalizable?
  • The SEC’s Staff Accounting Bulletin 104 (originally SAB 101)
  • What must we understand to deal with this literature?
  • What should your revenue recognition accounting policy say?
  • SEC focus areas
10:30 -10:45 a.m. Coffee and Refreshment Break
10:45 - Noon Current Literature for Revenue Recognition – Section Two
  • The SEC’s move to shake things up – SAB 104
  • Concepts, details, rules
  • Where companies got in trouble with this SAB
  • Issues the SAB raises
  • Service from the customer's perspective
  • Shipping and transfer of title
  • Complications with cross-border transactions
  • Customer acceptance issues
Noon -1:00 p.m. Lunch
1:00 - 2:45 p.m. Current Literature for Revenue Recognition – Section Three
  • Software Revenue Recognition – (ASC 606-985)
  • Multiple element arrangements and THE NEW GUIDANCE IN THIS AREA (ASC 605-25)
  • Collaborative arrangements
  • Current status of the guidance
  • Changes to come?
  • Percentage of completion accounting
  • Accounting for services
2:45 - 3:00 p.m. Coffee and Refreshment Break
3:00 - 4:30 p.m. Case Studies in Where Revenue Recognition Goes Wrong – SEC Enforcement Actions and Restatements

  • Distinction between restatements for errors versus fraud
  • SEC Enforcement actions – Wrongdoers caught!
  • Restatements – Lessons learned!
  • What do we learn from these events?
    		•
    4:30 - 5:00 p.m. SEC Staff Focus Hot Buttons
    • Issues for accounting policy disclosure
    • Financial statement display and classification issues
    • Gross versus net presentation
    • Sales taxes, value added taxes
    • Shipping and handling
    • Breakage
    5:00 - 6:30 p.m. Cocktail Party for Participants and Their Guests
    Day 2
    8:00-8:30 a.m. Continental Breakfast
    8:30-10:00 a.m. Software Revenue Recognition Issues
    • Where does software revenue recognition guidance apply?
    • When is software more than incidental and how and when this guidance is changing!
    • Identifying elements
    • Allocating arrangement proceeds
    • Undelivered elements- VSOE
    • Issues with significant hardware deliverables
    • Possible changes in the future
    10:00-10:15 a.m. Coffee and Refreshment Break
    10:15-10:45 a.m. Current Issues in Revenue Recognition
    • Software Issues currently in progress
    • Other FASB and EITF areas being addressed
    10:45-11:15 a.m. IFRS Revenue Recognition Standards
    • IAS 18 and other IAS's that deal with revenue recognition
    • Overall principles based approach
    • What happens when specific guidance does not exist?
    11:15-11:45 The FASB's and IASB's Revenue Recognition Projects
    • Review of the discussion paper
    • Key concepts in the contractual asset and liability approach
    • Possible major changes in some areas!
    • Treatment of rights of return
    • Onerous test for units of account
    • How the change might occur
    11:45-Noon Wrap-up, Final Questions and Answers
    Date City Register
    Apr 26 - 27, 2012 Las Vegas, NV Register

    More Information

    Share This Course

           Year after year, an excellent program. I expect to attend this program every year until I retire!

    Pamela B. Bruno Vice President, Controller & CAO BNP Residential Properties, Inc. Charlotte, NC

    Image