Excellent instructor. He definitely takes this from ‘just CPE’ to an actual learning opportunity.

Tracey Brown, Consultant, Whitney Information Network, Inc.

Revenue Recognition In Depth Workshop

One and one-half days — 12 CPE Credits

Learn to navigate the maze of existing GAAP literature and deal with recent changes to successfully account for revenue recognition challenges and understand coming changes.

In this workshop you will interact with the instructor to:

• 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)

• 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

• Learn how to write a robust, transparent revenue recognition accounting policy

• Understand SEC staff hot buttons for revenue recognition

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

Course Agenda

Day One

8:30-9:00 – Registration and Continental Breakfast

9:00-9:10 – Workshop Overview

• Schedule and learning objectives

• Administrative details

• Introductions

9:10-9:45 – 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 – 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 – 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 – Lunch

1:00-2:45 – 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 – Coffee and Refreshment Break

3:00-4:30 – 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 – 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 – Cocktail Party for Participants and Their Guests

Day Two

8:00-8:30 – Continental Breakfast

8:30-10:00 – 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 – Coffee and Refreshment Break

10:15-10:45 – Current Issues in Revenue Recognition

• Software Issues currently in progress

• Other FASB and EITF areas being addressed

10:45-11:15 – 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

Learning Objective: To provide an understanding of the requirements of revenue recognition principles.
Delivery Method: Group-Live
Prerequisites/Advance Preparation: None
Program Level: Intermediate.

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