Revenue from Contracts with Customers - IFRS 15 and US GAAP Topic 606 (2 days)

Course code: 1311

Introduction

Arguably revenue recognition is the most important and controversial topic in financial reporting. Preparers must develop a policy for measuring the amount and timing for recognising revenue for goods and services. Revenue is a key performance indicator that drives the recognition of expenses and profits and valuation of an entity.

The IASB and the US Financial Accounting Standards Board (FASB) collaborated on a project to develop improved, converged standards for revenue recognition. Following a Discussion Paper and two Exposure Drafts, the Boards issued substantially converged standards in May 2014. The IASB’s standard, IFRS 15 is mandatory for periods beginning on or after 1 January 2018 with early application permitted. The FASB published ASU 2014-09 Revenue from Contracts with Customers (Topic 606) at the same time, and this is compulsory for public entities for annual periods beginning after December 15, 2017: early adoption is permitted.

Subsequently, in 2016, the Boards separately issued clarifications of several aspects of their new standards. These apply from the same effective dates as the original standards.

This course will focus on the requirements of the new standards, IFRS 15 and Topic 606. Concise explanations are provided, with detailed examples to illustrate application of the standard.

Currently IFRS consists of two principles-based standards, IAS 18 Revenue and IAS 11 Construction Contracts and three IFRS Interpretations. These were criticised for failing to provide adequate guidance on application - they have been described as ‘vague and inconsistent’.

US GAAP has broad revenue recognition concepts and numerous detailed pronouncements on revenue (more than 200), many of which deal with industry-specific issues. Here the criticism has been that this can result in different accounting for revenue from economically similar transactions.

This important program answers questions such as:

  • How will the new standard affect the timing of revenue recognition?
  • What are the standards’ presentation requirements?
  • How will preparers deliver the enhanced disclosures required by the new standard?
  • What choices are there regarding transitional requirements?
  • What is the likely impact on different industries, such as telecoms, software, extractive industries, manufacturing and retail?
  • How and when are royalties, dividends and interest income recorded?

Topics

  • IFRS 15 and Topic 606 Revenue from Contracts with Customers
    • Scope
    • Recognition
      • Identifying the contract
      • Contract modifications
      • Identifying separate performance obligations
      • Satisfying performance obligations – over time and at a point in time
    • Measurement
      • Determining the transaction price – variable consideration, time value of money
      • Allocation of price to separate performance obligations
    • Contract costs
    • Presentation
    • Disclosure
    • Transition
    • Differences between IFRS 15 and Topic 606
    • Application guidance
      • Sale with right of return
      • Warranties
      • Principal versus agent considerations
      • Upfront fees
      • Licensing and rights to use intellectual property
      • Repurchase agreements
      • Consignment arrangements
      • Bill-and-hold arrangements
      • Customer acceptance

Teaching method

  • Group live instruction, with interactive participation encouraged
  • Discussion of IFRS & US GAAP / SEC requirements for revenue recognition
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Prerequisites

Basic understanding of accounting for revenue recognition. No advance preparation is required for this course.

Course benefits

  • Learn the scope of the new revenue recognition standard
  • Apply the five steps to recognise revenue
  • Understand the required changes to measurement of revenue
  • Plan how to implement the transition
  • Identify new presentation and disclosure requirements

Testimonials

See what past participants said about this course:

[My previous training has been in] large seminars compared to this small group. This one is more interactive and specialized for us.

Karl Gerhard Bråstein Dahl, Senior Vice President,
Knutsen NYK Offshore Tankers AS, Norway

An excellent, well organized, highly educational experience. Pay for and get a professional teaching experience.

The course was very valuable because we talked through many examples both from IFRS and real life examples. [Instructor] did a great job of trying to relate the theoretical concepts to my audit portfolio.

Who should attend?

All preparers of financial statements.

CPE / CPD Accreditation

NASBA

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. 


Field of study: Accounting

ICAEW Partner in Learning

IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs.

New York State Board of Public Accountancy

IASeminars is registered with the New York State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 002546. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Texas State Board of Public Accountancy

IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 009689. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Venue

  • Our London seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
  • Our Chicago seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered participants by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
  • Our London seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.

Instructor(s)

  • Saket Modi

    Saket Modi is a London-based financial trainer and consultant with over 15 years of professional experience. He specialises in delivering courses on advanced accounting, financial reporting and financial analysis topics, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), financial instruments and corporate finance. Saket has spent considerable time working, advising and training on complex IFRS matters - especially in relation to recognition and measurement of financial instruments. He has gained valuable experience working with both FTSE listed companies and also with Big 4 accounting firms. He has designed and facilitated workshops for banks and other financial institutions and also for corporates in the UK, Europe, Africa, Middle East and Asia, and was invited by the International Auditing and Assurance Standards Board® (IAASB®) to present a paper on IFRS 9 Financial Instruments at their board meeting in New York. Saket is a member of the Institute of Chartered Accountants of India, has completed the IFRS certificate course offered by the Institute of Chartered Accountants in England and Wales (ICAEW) and also holds the Diploma in IPSAS from the Chartered Institute of Public Finance and Accountancy (CIPFA). As well as being a qualified accountant, Saket is also a CFA® charterholder.

  • Richard McCabe

    Richard McCabe (Canada) is a recently retired accounting executive with experience in the utility and energy marketing industries. Richard led his company’s transition from Canadian GAAP to IFRS and provided dual reporting in IFRS and US GAAP, following his company’s recent acquisition by a major US based conglomerate.

    His company was the only Canadian electricity utility that that was able to recognise its regulatory assets and liabilities fully under IFRS. Richard was a participant in witness panels before his company’s regulator to support their biennial rate applications. He was an active member and later the Chair of the Finance and Accounting Committee of the Canadian Electricity Association and was actively involved in the initiative to gain full recognition of a utility’s regulatory assets and liabilities under IFRS.

    As a result of his experience, he was appointed as a member of the Consultative Group to the International Accounting Standards Board on the potential recognition of regulatory assets and liabilities under IFRS. The group has been partially successful to date with the implementation of IFRS 14 and is continuing to work with the IASB towards full recognition.

    Richard is a Chartered Accountant, Scottish and Canadian, and an MBA. Richard has been an Internal Audit Director and a Controller and has held senior positions in the Office of the Auditor General of Alberta and the utility regulator in Alberta, the Alberta Utilities Commission.

    Chris Boland

    Chris Boland (Canada) is a professional IFRS consultant specializing in assisting clients with their transition to International Financial Reporting Standards (IFRS) and the application of new IFRS Standards. Chris has assisted over 75 clients covering most industries and sectors in complex IFRS matters He is a Certified Public Accountant, Canadian Chartered Accountant, and also holds the Certified Management Accountant designation. In addition to IFRS, Chris also has extensive experience with matters such as US GAAP, SOX and corporate governance. Prior to establishing his public practice and teaching career, Chris was General Manager (Accounting, IFRS, Internal Controls and Tax) at Canada Post Corporation. His earlier positions at other organizations included being CFO and VP Finance; Director of Tax and Treasury, Controller; Manager of Financial Reporting and Controller (Overseas Operations); Manager of Financial Reporting; and Budget Analyst. He was also an Auditor at the Office of the Auditor General in Canada. Chris’ 25 years of experience also include 12 years in the telecommunication hardware and software industry and in pharma research.

  • Robert Moulin

    Robert Moulin (United Kingdom) is an international trainer and consultant specialising in International Financial Reporting Standards. He has been designing and delivering IFRS training courses for over 15 years, in such regions as Europe, Africa, the Middle East and Far East. Rob’s teaching work also includes preparing candidates for the final level corporate reporting exams of several global accountancy bodies. An experienced facilitator, Rob also leads workshops for senior managers and owner-entrepreneurs to help develop their business strategy and financial and commercial awareness. He has worked in various senior financial positions for companies large and small, including global players such as Bacardi and Mattel. Also a trained journalist, Rob has produced and presented financial programmes for the UK’s national TV broadcaster. Robert is a fellow of the Association of Chartered Certified Accountants (FCCA).

    Bill Kemp

    Bill Kemp (UK) is IASeminars' Senior Instructor and a consultant specialising in International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and the comparison of such standards with UK, US and Canadian Generally Accepted Accounting Principles (GAAP). He has delivered many public and in-house training courses around the world to a diverse audience from sectors including government and non-profit, financial services, retail, real estate, oil & gas, telecoms, and IT. An experienced educator, he was formerly Managing Director of a major London financial training company. Bill's work also includes training and consulting on financial statement analysis and business valuation, and he teaches on the International Accounting MSc programme of the London School of Economics. He is a UK chartered accountant, and was educated at the Edinburgh Academy and at Oxford University.

In House

To bring this course in-house please contact us and we will be pleased to assist

Course details

Course schedule

Select a start date for more details

25 Jul 2017 London

Course level:
Overview
CPE / CPD:
16 hours
Start date:
25 Jul 2017
Start time:
09:00
Finish date:
26 Jul 2017
Finish time:
18:00
Location:
London
Price:
GBP 1,750
Subject to UK VAT (Read more)

22 Aug 2017 Chicago

Course level:
Overview
CPE / CPD:
16 hours
Start date:
22 Aug 2017
Start time:
09:00
Finish date:
23 Aug 2017
Finish time:
18:00
Location:
Chicago
Price:
USD 2,600

6 Nov 2017 London

Course level:
Overview
CPE / CPD:
16 hours
Start date:
6 Nov 2017
Start time:
09:00
Finish date:
7 Nov 2017
Finish time:
18:00
Location:
London
Price:
GBP 1,750
Subject to UK VAT (Read more)
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