Revenue Recognition: Determining and Allocating the Transaction Price

Overview

Revenue recognition
Understand Steps 3 and 4 in the five-step process for revenue recognition under FASB ASC 606, Revenue from Contracts with Customers. Understand Step 3, which deals with determining the transaction price, including refund liabilities, variable consideration, and accounting policy elections. Understand Step 4, which deals with allocating the transaction price to performance obligations in the contract including stand-alone selling prices, allocation of a discount, and changes in the transaction price.  

Objectives

• Recognize requirements for determining a transaction price
• Recognize requirements for allocating a transaction price

Highlights

• Determining the transaction price
• Allocating the transaction price to performance obligations in the contract
• Accounting policy election
• Variable consideration
• Significant financing components

Designed For

Accountants in public practice, industry, and academia who need an update on the latest revenue recognition guidance

Prerequisites

Experience in application of accounting standard