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.
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:
identifying performance conditions
time value of money
performance obligations over time
elimination of VSOE requirement for software transactions