Rev Rec: Considerations for Performance - Part 1

This course is meant to complement the course that evaluates all aspects of the five steps to revenue recognition.  The course “Complying with the Revenue Recognition Standard” examines the five-step model outlined in the standard that organizations must utilize when recognizing revenue. The new revenue recognition standard applies to all companies.

This course delves into step two of the revenue recognition process relating to performance obligations. Identifying performance obligations requires having a detailed understanding of the contract, deliverables, promises and contract timing.  It involves being able to distinguish between distinct and non-distinct goods and services to identify whether one or more performance obligations exist.  This task involves significant judgment and requires specific considerations be applied to properly identify the performance obligations. 

Other aspects relating to performance obligations that will be discussed within this segment are the concepts of measuring progress over a period of time and identifying how to recognize revenue over a period of time.  This segment also evaluates how to recognize revenue related to intellectual property.

This course is the first of two that evaluate performance obligations.  Part two will examine elements surrounding factors that impact performance obligations and examining how to handle up-front fees or stand-alone offers.

The course utilizes many examples from numerous industries to enhance learning of the various concepts.