Objective: Understand the principles and guidelines for revenue recognition under ASC 606, including the criteria for recognizing revenue, measurement approaches, and disclosure requirements in financial statements.

Key Concepts

Components of Revenue Recognition under ASC 606

Objective: Explore the key components of ASC 606, which governs the recognition and measurement of revenue.

  1. Identifying the Contract:
  2. Identifying Performance Obligations:
  3. Determining the Transaction Price:
  4. Allocating the Transaction Price:
  5. Recognizing Revenue:

Key Considerations in Revenue Recognition

Objective: Identify important considerations and common challenges when applying revenue recognition principles under ASC 606.

  1. Variable Consideration:
  2. Significant Financing Component:
  3. Contract Modifications:

Impact on Financial Statements

Objective: Analyze how revenue recognition under ASC 606 affects financial reporting.

  1. Balance Sheet Impact:
  2. Income Statement Impact: