Revenue Recognition and Accounting Standards

Financial Management and Accounting October 25, 2025
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Introduction

This comprehensive course provides detailed knowledge of revenue recognition principles under current accounting standards, with particular focus on IFRS 15 and ASC 606. Participants will master the five-step model for revenue recognition and learn to apply these principles to various business scenarios and industry contexts. The program covers contract identification, performance obligation assessment, transaction price determination, and revenue allocation across multiple deliverables. Through practical case studies and industry-specific examples, attendees will develop the expertise to implement robust revenue accounting processes and ensure compliance with evolving standards.

Objectives

Key learning objectives for this course include:

  • Master the five-step revenue recognition model under IFRS 15/ASC 606
  • Identify and analyze contracts with customers
  • Determine performance obligations in contracts
  • Calculate and allocate transaction price
  • Apply revenue recognition criteria to various industries
  • Understand contract modification accounting
  • Implement disclosure requirements for revenue
  • Manage the transition from previous revenue standards
  • Address industry-specific revenue recognition challenges

Target Audience

  • Revenue Accountants
  • Financial Controllers
  • Chief Financial Officers
  • Public Accountants
  • Financial Reporting Managers
  • Sales and Contract Managers
  • Revenue Recognition Specialists
  • Accounting Policy Managers

Methodology

  • Case studies of revenue recognition scenarios
  • Five-step model application exercises
  • Industry-specific scenario analysis
  • Contract review workshops
  • Group discussions on complex issues
  • Individual research on industry guidance
  • Disclosure preparation practice

Personal Impact

  • Enhanced revenue accounting expertise
  • Improved contract analysis skills
  • Stronger technical application abilities
  • Increased confidence in revenue decisions
  • Better understanding of industry variations
  • Professional growth in financial reporting

Organizational Impact

  • Improved revenue accounting accuracy and consistency
  • Enhanced compliance with current standards
  • Better contract management and review processes
  • Reduced risk of revenue restatements
  • Stronger investor confidence in revenue reporting
  • Improved cross-departmental alignment on revenue

Course Outline

Revenue Recognition Framework

Standard Overview
  • IFRS 15 and ASC 606 principles
  • Core revenue recognition model
  • Scope and applicability of standards
  • Transition requirements and options
Contract Identification
  • Contract definition and criteria
  • Combination of contracts
  • Contract modification assessment
  • Implied and oral contracts

Five-Step Model Application

Step 1: Identify Contract
  • Contract enforceability assessment
  • Approval and commitment requirements
  • Rights and payment terms identification
  • Commercial substance evaluation
Step 2: Performance Obligations
  • Performance obligation identification
  • Distinct goods and services assessment
  • Series provision application
  • Promised goods and services analysis

Transaction Price Determination

Step 3: Transaction Price
  • Fixed and variable consideration
  • Time value of money considerations
  • Non-cash consideration valuation
  • Consideration payable to customer
Variable Consideration
  • Estimating variable consideration
  • Constraint application principles
  • Sales returns and refunds
  • Volume discounts and rebates

Allocation and Recognition

Step 4: Allocation
  • Standalone selling price determination
  • Allocation of transaction price
  • Discount allocation methods
  • Changes in transaction price
Step 5: Recognition
  • Point in time recognition criteria
  • Over time recognition criteria
  • Measurement of progress
  • Right to payment assessment

Special Topics and Applications

Contract Costs
  • Incremental costs of obtaining contracts
  • Costs to fulfill contracts
  • Amortization and impairment
  • Practical expedients application
Industry Applications
  • Software and SaaS revenue recognition
  • Construction and long-term contracts
  • Telecommunications bundles
  • Manufacturing and product sales

Disclosure and Implementation

Disclosure Requirements
  • Qualitative and quantitative disclosures
  • Contract balance disclosures
  • Performance obligation information
  • Transition disclosures
Implementation Strategies
  • Internal control considerations
  • Systems and process changes
  • Staff training requirements
  • Ongoing monitoring approaches

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