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In recent years, revenue recognition has been one of the most important and controversial topics in financial reporting. The International Accounting Standards Board (IASB) has received more questions in this area from companies adopting IFRS than on any other topic. Under US GAAP, incorrect revenue recognition is the reason most often cited by the SEC for requiring companies to restate their financial statements.
Under IFRS, there is one major standard on revenue (IAS 18), but the concern has been that there is not enough guidance regarding different types of revenue transactions, particularly in the area of industry standards.
In the US Revenue Recognition guidance is found in Accounting Standards Codification (ASC) topic 605. In addition, each industry, with separate accounting guidance, has its “own” revenue recognition guidance in the ASC.
The IASB and the FASB have undertaken a joint revenue recognition project Revenue from Contracts with Customers that will sweep away much of the present accounting guidance from current accounting standards. The exposure draft has been re-exposed with a likely accounting standard issue date of late 2011 or early 2012.
In November 2011, the IASB issued a revised exposure draft. In the second and third quarter of this year, the IASB will consider the comments received relating to the revised revenue recognition proposals. At the moment, it is expected that the final standard will be published in 2013 .
This course provides the information needed to navigate complex issues regarding the recognition and measurement of revenue. Concise explanations are provided, with numerous examples presented to illustrate application of the standards. Information on the latest pronouncements (including those not yet effective) and other pending issues is also presented. Current guidance is provided for companies adopting IFRS for the first time and for companies that need to reconcile their local GAAP to either IFRS or US GAAP. Course participants are also brought up-to-date on the joint IASB-FASB revenue recognition project.
This programme answers questions such as:
- What revenue reporting issues have been most recently scrutinised by regulators?
- Where can guidance for unique revenue recognition situations be found?
- What are the differences between IFRS and US GAAP in accounting for revenue?
- How are the separate elements in multiple-element arrangements identified?
- What upcoming changes are anticipated in accounting for revenue?
Basic understanding of accounting for revenue recognition.
No advance preparation is required for this course.
- Review of Important IFRS and US GAAP pronouncements relating to revenue
- IAS 18 Revenue - Applying the Standard to:
- Sale of goods (five criteria)
- Delivery of services (stage of completion method)
- Interest, royalties and dividends
- Determining revenue policies where guidance is lacking
- IFRIC 13 Customer Loyalty Programmes
- IFRIC 15 Agreements for the Construction of Real Estate
- US GAAP
- SEC criteria (SAB 104)
- ASC 605-Products
- ASC 605-Services
- ASC 605-Multiple Element Arrangements, including ASU 2009-13 on Revenue Recognition with Multiple Deliverables
- ASC 605-Rights to Use
- Current Issues:
- Revenue with right of return
- Delivery and substantial performance
- Multiple-element contracts
- Gross versus net reporting (including taxes collected and remitted)
- Round tripping
- Non-monetary transactions (barter revenue)
- Deferred payments (discounted cash flow)
- Sale and repurchase agreements
- Bill and hold sales
- Vendor consideration given to a customer
- Service provider consideration given to a manufacturer or reseller
- Reimbursements for out-of-pocket expenses
- Non-refundable advance payments received
- Effect of fair value measurement
- Accounting for collaborative arrangements
- Current Status of IASB and FASB Revenue Projects
- Changes to Financial Statement Presentation
- Navigate the many sources of accounting guidance on revenue recognition
- Understand issues that are likely to be scrutinised by regulators
- Establish revenue policies where specific guidance does not exist
- Allocate contract revenues appropriately in multiple-element arrangements
- Differentiate between IFRS/US GAAP/Local GAAP requirements
- Become familiar with the most recent revenue-related pronouncements and pending issues and prepare your firm for the NEW Revenue Recognition Standard
- Live group instruction, with interactive participation encouraged
- Discussion of IFRS & US GAAP / SEC requirements for revenue recognition
- Real-world examples showing revenue reporting abuses
- Use of case studies to illustrate the criteria for revenue recognition
- All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials
Bring This Course In House
To bring this course in-house please contact us and we will be pleased to assist.
Continuing Professional Education (CPE)
All of our Beijing seminars take place in 4 star professional conference facilities, usually in city-centre downtown 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..
This one-day course presents the information needed to navigate complex issues surrounding the recognition and measurement of revenue under both IFRS and US GAAP. The programme is presented using extensive examples and real-world case studies. It also includes an extensive discussion and presentation of the proposed new rules for revenue recognition.
As a participant in the CFA Institute Approved-Provider Program, IASeminars has determined that this program qualifies for 7 credit hours. Please use promotion code "CFACPE" when booking, to ensure that CE credit for your participation will be automatically recorded in your CE Diary.