ASC 606 Revenue from Contracts with Customers: Overview of the new revenue recognition standard
From Dec 3-4 conference at Hyatt Santa Clara
Presentation led by Emily Liu and Alisher Zokhidov from PwC
See upcoming Revenue Recognition training events and other CPE conferences from ACS here: Upcoming Events
The training session carried two objectives as the opening morning of the two-day conference on revenue recognition accounting:
1. Why the new standard was issued and why it is important
2. Observations of the impacts of the new standard and how it departs from current GAAP.
Emily and Alisher detailed the five steps to apply the new model
Where things begin to increase in complexity are other considerations including Principal vs. Agent Assessment, contract costs (incremental costs of obtaing a contract, costs to fulfil a contract, amortization, impairment), method of adoption (retrospective or practical expedient) and prospective disclosures.
More guidance will likely be added during the transition period and companies will need to continue to monitor the ongoing evolution.
The second half of the PwC presentation on the new revenue recognition standard focused on key areas and illustrative examples.
The topics included examples on:
collectibility
contract modifications
identifying performance conditions
variable considerations
time value of money
performance obligations over time
elimination of VSOE requirement for software transactions
term licenses
Overview of the new revenue recognition standard: ASC 606 Revenue from Contracts with Customers
Oct 27, 2015 in Austin, TX
See all upcoming Revenue Recognition CPE Events here: Link to events schedule
Led by PwC Partner Reto Micheluzzi and former Postgraduate Technical Assistant to the FASB, Nick Passalugo the session provided an overview of the new standard and why it was issued and its importance. They also covered the impacts of the standard and discussed how it departs from existing GAAP
The session began with a discussion of a discussion of the history of the project beginning with inception through the 2018 effective date. Reto covered the effective dates for public, non-public and IFRS companies as well as early adoption.
There are five steps to apply the new model.
1. Identify the contract with the customer
2. Identify the separate performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price
5. Recognize revenue when a performance obligation is satisfied
Reto and Nick went into depth on each of these steps with examples and illustrations to provide clarity.
They followed this discussion by covering other considerations including principal vs. agent indicators, bill-and-hold, incremental costs of obtaining a contract, costs to fulfill a contract, amortization, impairment.
The method of adoption Retrosepctive and Practical expedient were also covered.
Prospective disclosures will exceed the general current guidance under GAAP.
New COSO Guidance for 2013 – SOX Training
SOX & Internal Controls continue to be a dynamic area. Numerous best practices have evolved and the new COSO guidance put out in May 2013 adds more room for disucssion.
All of these topics and more will be addressed in the SOX & Internal Controls Conference on November 18-19 in Washington D.C. at the Grand Hyatt. Here is a link to the details and registration info: https://acslive.com/events/sox_2013dc.html
Deloitte will discuss the latest developments as well as emerging issues. We’ll dive into the latest COSO guidance and an industry panel will share the issues they grapple with in their organizations. Past SEC officials will provide perspective on the big picture and E&Y will lead the fraud discussion. PwC will discuss GRC and ERM. Deloitte will circle back on the second day for more practical talk on Optimization of your process.
Pricing is $795 if you register 45 days early. Regular price is $995. You will earn 16 CPEs,
“Very interactive and energetic…attended last year too and found topics very relevant..” – Dole
“Very informative and relevant material – good to relate to current topics and trends” – Cisco
“Excellent. Relevant, timely and engaging speakers – the interactive panel was very informative. Several ideas to implement or suggest – always a plus” – Freddie Mac
Revenue Recognition Training on New FASB Standard
The new Revenue Recognition Standard from the FASB/IASB is rumored to be finalized in the next month. Experts from the Big 4 and industry are developing plans to prepare for the changes.
ACS is hosting (2) two-day conferences to get attendees from industry up to speed on what the changes will mean for their organizations and industries.
The conferences focus on the new accounting standard and the practical differences from current GAAP. We’ll also have an industry panel discuss how they are planning to handle the changes and convey the changes throughout their organization as they prepare to adopt.
The SEC will also weigh in on rev rec related issues, we’ll cover Software as a Service (SAAS) accounting and case studies to further illustrate how the new standard will look in practice.
Pricing is $795 if you register well in advance – 45 days early.
Locations are Boston Hyatt Cambridge on September 19-20 and Santa Clara/San Jose, CA on December 3-4: https://www.acslive.com/events/revenue_2013.html
Morning News
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Boston CPE Events
We’ve expanded our Boston CPE for CPAs this year to three events. All will be held at the Boston Hyatt Cambridge.
We’ll again have the Financial Accounting & Reporting Update designed for corporate CPAs on June 12-13. Attendees will earn 16 CPEs. The agenda has been updated and we have added a number of new topics based on the latest SEC & FASB developments: https://www.acslive.com/events/financial_2013cambridge.html
We’ve added a one-day (8 CPE hour) course on Employment Law in June. Dan Corey will lead the discussion. Dan is a top notch instructor who has honed his presentation to be both highly educational and entertaining: https://www.acslive.com/events/employment_2013cambridge.html
Also, we have scheduled a Revenue Recognition Accounting Conference in September. The agenda will explore all the latest developments including the FASB project, SEC guidance and industry practicalities: https://www.acslive.com/events/revenue_2013_cambridge.html
Click the links to see the full agenda and details
Chicago CPE Accounting 2013 events
Just a quick note about two 2013 CPE events in Chicago being led by Big 4 experts and designed for 16 CPEs each:
Revenue Recognition Accounting Update Conference – June 20-21 $795: https://www.acslive.com/events/revenue_2013_chicago.html
Financial Accounting & Reporting Update – November 21-22 $695: https://www.acslive.com/events/financial_2013chicago.html
Both will be held at the Chicago Marriott oak Brook about 20 minutes from O’Hare and 15-20 minutes from downtown.
Phoenix CPE: Accounting Update conference on March 21-22 at Hyatt Phoenix
Accounting Conferences and Seminars LLC is hosting a two-day Financial Accounting & Reporting Update at the Phoenix Hyatt Regency on March 21-22. The speakers are partners and senior managers from the Big 4. The topics are FASB & SEC Hot buttons including revenue recognition, leasing, loss contingencies, Dodd-Frank developments, fraud, business combinations, EITFs, SEC Comments…
Pricing is $695 if you register well in advance – a $200 discount off the regular price. The program qualifies for 16 CPEs.
Here is a link to the agenda and details: https://www.acslive.com/events/financial_2013phoenix.html
Life Science Accounting Conferences (accounting for pharmaceutical companies)
Accounting Conferences and Seminars offered the Life Science Accounting Update in San Jose, CA and Parsippany, NJ in 2012.
In May, 2013 an updated conference will be held back at the Hyatt Santa Clara, CA. Here is a link to the agenda and details: https://www.acslive.com/events/lifescience_2013.html
The 2012 conferences led off with a technical accounting update led by KPMG where they discussed the AICPA IPR&D draft practice guide, intangibles, goodwill and testing indefinite-lived intangible assets for impairment, medical device excise tax and an SEC Update.
KPMG followed with a Tax Update covering global supply change, tax consideration related to accounting for share-based compensation under ASC 718, considerations for global equity plans and a Legislative Tax update.
A roundtable discussion led by conference chair and Deloitte partner, Brian Jobe, allowed all the attendees to introduce themselves and provide some background.
PwC led a session on Collaboration Agreement and Variable Interest Entities where the speakers discussed key considerations of the amended consolidation standard including red flags
Deloitte led the next session on Revenue from Contracts with Customers including a summary of the revenue recognition project to date and a summary of key provisions in the FASB exposure draft and potential industry implications.
Bill Greenrose, Deloitte Director, led the regulatory development discussion on the global regulatory framework, navigating compliance challenges, staying ahead of enforcement trends and competing in a changing regulatory environment.
The conference concluded with additional session on leasing, valuation and an industry overview by Citi, and a discussion of capital structures by Deloitte.