Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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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 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 there is no comprehensive standard on revenue recognition, but there are more than 100 pronouncements that contain guidance on very specific revenue recognition topics. These include FASB standards, interpretations, staff positions and concept statements, as well as guidance provided by the SEC, AICPA and the Emerging Issues Task Force.

The IASB and the FASB have undertaken a joint revenue recognition project as well as independent projects that that will result in changes to current accounting practices over the next several years.

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 and changes to financial statement presentation.

This program answers questions such as:

• What revenue reporting issues have been most recently scrutinized 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?

Prerequisites

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

Course Level

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Overview

Topics

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• 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 Interpretations
• IFRIC 13 Customer Loyalty Programs
• IFRIC 15 Agreements for the Construction of Real Estate
• US GAAP
• SEC criteria (SAB 104)
• FASB Statements and Interpretations
• FASB Staff Positions (SOP)
• Emerging Issues Task Force (EITF) update
• 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
• Nonrefundable advance payments received
• Effect of fair value measurement
• Accounting for collaborative arrangements
• Accounting for the sale of real estate subject to a buy-sell clause
• Current Status of IASB and FASB Revenue Projects, including:
• December 2008 IASB Discussion Paper: Preliminary Views on Revenue Recognition in Contracts with Customers
• October 2008 IASB Discussion Paper: Presentation of Financial Statements
• Changes to Financial Statement Presentation

Course Benefits

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• Navigate the many sources of accounting guidance on revenue recognition
• Understand issues that are likely to be scrutinized 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

Teaching Method

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• 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

Continuing Professional Education (CPE)

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16 hours

Venue

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All of our Dubai 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.