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For years, revenue recognition has been the cause of audit failures and the focus of corporate abuse and fraud allegations. Today, there is FASB ASC 606, a new standard which is critical to understand before it can be successfully implemented. Supported by practical examples, industry specific real-life scenarios, and more than a dozen exercises, this work will assist you in avoiding revenue recognition traps and provide you with the latest FASB guidance. You will gain an in-depth understanding of the revenue recognition framework that is built around the core principles of this new five-step process. In addition, you will gain a better understanding of the changes in disclosure requirements.Key topics covered include:* Background, purpose, and main provisions of new standard (FASB ASC 606)* Transition guidance* Five-step process for recognizing revenue* Disclosure requirements* Implementation guidance -- contracts, tax matters, internal controls, IT
List of contents
Chapter 1 1-1Revenue Recognition -The Need for Change 1-1Chapter 2 2-1Identifying The Contract With a Customer 2-1Chapter 3 3-1Identifying The Performance Obligations in the Contract 3-1Chapter 4 4-1Determining the Transaction Price 4-1Chapter 5 5-1Allocating the Transaction Price to the Performance Obligations in the Contract 5-1Chapter 6 6-1Recognizing Revenue When a Performance Obligation Has been Satisfied 6-1Chapter 7 7-1Special Considerations Under FASB ASC 606 7-1Chapter 8 8-1Presentation and Disclosure Requirements Under FASB ASC 606 8-1Chapter 9 9-1Transition Guidance and Available Resources 9-1Appendix A Chapter 9, A-1Revenue Recognition Task Force Status of Implementation Issues Chapter 9, A-1Chapter 10 10-1A Comparison between IFRS and US GAAP 10-1Glossary Glossary 1Index Index 1Solutions Solutions 1Chapter 1 Solutions 1Chapter 2 Solutions 2Chapter 3 Solutions 6Chapter 4 Solutions 9Chapter 5 Solutions 14Chapter 6 Solutions 17Chapter 7 Solutions 21Chapter 8 Solutions 23Chapter 9 Solutions 25Chapter 10 Solutions 2
About the author
The American Institute of CPAs (AICPA) is the world's largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the procession.
Summary
For years, revenue recognition has been the cause of audit failures and the focus of corporate abuse and fraud allegations. Today, there is FASB ASC 606, a new standard which is critical to understand before it can be successfully implemented. Supported by practical examples, industry specific real-life scenarios, and more than a dozen exercises, this work will assist you in avoiding revenue recognition traps and provide you with the latest FASB guidance. You will gain an in-depth understanding of the revenue recognition framework that is built around the core principles of this new five-step process. In addition, you will gain a better understanding of the changes in disclosure requirements.
Key topics covered include:
* Background, purpose, and main provisions of new standard (FASB ASC 606)
* Transition guidance
* Five-step process for recognizing revenue
* Disclosure requirements
* Implementation guidance -- contracts, tax matters, internal controls, IT
