Revenue from Contracts with Customers - IFRS 15 and US GAAP Topic 606 (2 days)
Revenue recognition is arguably the most important and controversial topic in financial reporting. Preparers must develop policies for measuring the amount and timing of 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. 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 earlier 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 the Boards have 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.
IFRS previously comprised two principles-based standards, IAS 18 Revenue and IAS 11 Construction Contracts as well as three IFRS Interpretations. These were criticised for failing to provide adequate guidance on application - they have been described as ‘vague and inconsistent’.
US GAAP had broad revenue recognition concepts and numerous detailed pronouncements on revenue (more than 200), many of which dealt with industry-specific issues. Here the criticism was that, in some cases, this resulted in different accounting for revenue from economically similar transactions.
This important program answers questions such as:
- How will the new standards affect the timing of revenue recognition?
- What are the standards’ presentation requirements?
- How can 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?
- IFRS 15 and Topic 606 Revenue from Contracts with Customers
- Identifying the contract
- Contract modifications
- Identifying separate performance obligations
- Satisfying performance obligations – over time or at a point in time
- Determining the transaction price – variable consideration, time value of money
- Allocation of price to separate performance obligations
- Contract costs - obtaining and fulfilling
- Contract assets
- Transition options
- Differences between IFRS 15 and Topic 606
- Application guidance
- Sale with right of return
- Principal versus agent considerations
- Upfront fees
- Licensing and rights to use intellectual property
- Repurchase agreements
- Consignment arrangements
- Bill-and-hold arrangements
- Customer acceptance
- 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
Basic understanding of accounting for revenue recognition. No advance preparation is required for this course.
- 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
See what past participants said about this course:
Took IFRS Training [with another provider] down the street - it was a large class and very confusing. This was small, interactive and very personable.
The instructor provided a very detailed & clear overview of IFRS 15. The course was excellent. I would recommend this course and IASeminars to anyone interested in working with IFRS.
[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
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.
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.
To bring this course in-house please contact us and we will be pleased to assist