This course provides an overview of critical challenges companies encounter under ASC 606, emphasizing several key areas that can be particularly challenging for effective revenue recognition. This includes distinguishing between recognizing revenue over time versus at a point in time as well as principal versus agent considerations.

Chapter 1 – Recognizing Revenue Over Time vs. Point in Time

This chapter addresses the determination that management must make at the inception of a contract regarding the timing of control transfer for goods or services to a customer. Understanding whether control transfers over time or at a specific point is essential, as it directly influences the timing of revenue recognition and the overall accounting treatment of the contract.

Chapter 2 – Principal vs. Agent Considerations

This chapter provides an overview of principal versus agent considerations within the context of the revenue recognition guidance. This includes a discussion of the factors that should be considered to determine whether an entity is acting as a principal or an agent (or both) within an arrangement. This chapter includes several examples to illustrate the guidance as well as best practices entities can implement to ensure their principal vs. agent evaluations are appropriate.

The other Segments of this series ASC 606 Insights are:

1. ASC 606 Insights: Contract Identification and Performance Obligations (Text Based Course)
2. ASC 606 Insights: Timing of Revenue Recognition & Principal vs. Agent Considerations (Text Based Course)
3. ASC 606 Insights: Managing Variable Consideration and Modifications (Text Based Course)
4. ASC 606 Insights: Licensing Revenue and Financial Statement Disclosures (Text Based Course)

NOTE: There is a 8 CPE Credit Hours combined course also available:
Revenue Recognition - Top Challenges in Applying ASC 606 (Text Based Course)