This course provides a clear and practical overview of two essential accounting standards: ASC 606 on revenue recognition and ASC 842 on lease accounting. Participants will learn the five-step model for recognizing revenue, including identifying contracts, measuring transaction prices, and allocating those prices to performance obligations. The course also covers key topics such as determining when a contract exists, accurately measuring transaction prices, and presenting and disclosing contract assets and liabilities. Additionally, the course explains how to identify and classify leases, as well as the initial and subsequent measurement of leases. Presentation and disclosure requirements for leases are also included, providing participants with a solid understanding of these important standards.

Chapter 1 – Revenue Recognition

This chapter provides a comprehensive overview of the revenue recognition principles under ASC 606. It covers the five-step model for recognizing revenue, which includes identifying contracts, measuring transaction prices, and allocating those prices to performance obligations. Participants will gain an understanding of key considerations, such as when a contract exists and how to measure the transaction price accurately. The chapter also explores the presentation of contract assets and liabilities, along with the required disclosures.

Chapter 2 – Lease Transactions

This chapter provides an in-depth overview of the lease accounting standards prescribed by ASC 842. This includes a discussion of how to identify a lease within a contract and how to classify a lease. This chapter also provides an in-depth review of the initial measurement, subsequent measurement, and presentation & disclosure of leases.