On Demand Webinar

1. Introduction
2. Exclusions 00:12:00
3. Inclusions 00:12:52
4. Partial Contracts 00:15:04
5. New 5-Step Approach  00:16:30
6. Step 1 - Identify a Contract with a Customer 00:20:46
7. Contract Existence 00:20:51
8. No Contract Existence 00:28:00
9. Prerequisites 00:27:59
10. Commercial Substance 00:29:05
11. Reassessment 00:31:00
12. Revenue Before Contract - Recognize Revenue  00:31:56
13. Revenue Before Contract - Liability 00:33:18
14. Collectibility is a Criteria 00:33:35
15. Example 00:35:12
16. Is This a Contact with a Customer? 00:36:07
17. Portfolio Approach 00:37:42
18. Example 00:38:06
19. Example 00:38:55
20. Combining Contracts 00:40:29
21. Contract Modification - Separate Contract 00:41:37
22. Contract Modification - Not a Separate Contract 00:43:42
23. Example 00:44:21
24. Case A 00:44:55
25. Case B 00:45:25
26. Step 2 Identify Performance Obligations 00:46:39
27. Performance Obligations 00:47:10
28. Implicit Promises 00:48:13
29. Example 1 00:51:38
30. What Does “Distinct” Mean? 00:53:20
31. If Not Distinct? 00:57:07
32. Example 1 00:57:59
33. Example 1 (Cont.) 00:59:26
34. Example 2 01:01:12
35. Step 3 - Determine the Transaction Price 01:02:45
36. Transaction Price Definition 01:03:57
37. Options and Change Orders 01:05:59
38. Must Consider 01:07:55
39. Existence of Significant Financing Component 01:08:52
40. NoSignificant Financing Component If 01:12:38
41. Variable Consideration 01:13:25
42. Promised Consideration is Variable If 01:16:25
43. Two Methods for Determining Variable Consideration 01:17:03
44. No Significant Financing Component If 01:
45. Noncash Consideration 01:19:45
46. Consideration Payable to a Customer 01:20:46
47. Step 4 - Allocate Transaction Price to Performance Obligations 01:22:22
48. Multiple Performance Obligations 01:22:46
49. Standalone Selling Price is Key 01:23:07
50. Discounts 01:25:25
51. Non-Pro Rata Allocation of Discount 01:25:53
52. Non-Pro Rata Allocation of Variable Consideration 01:26:40
53. Changes in Transaction Price 01:27:29
54. Example 01:29:05
55. Step 5 Recognize Revenue as Performance Obligations are Satisfied 01:30:50
56. Satisfying Performance Obligations 01:31:29
57. Indicators of Control at a Point in Time 01:32:31
58. Performance Obligations Satisfied Over Time 01:33:24
59. Measure Progress Toward Satisfaction - Output Method 01:35:24
60. Measure Progress Toward Satisfaction - Input Method 01:35:44
61. Reasonable Measures of Progress 01:37:32
62. New Disclosures 01:37:51
63. Transition Options 01:38:27
64. Speaker Closing 01:40:38
65. Presentation Closing 01:41:10

• Accounting (ACCG) 00:02:58, 00:20:57, 00:26:26, 00:49:49, 00:52:56, 01:16:01
• Asset 00:03:30, 01:33:00, 01:34:55
• Audit 00:55:06
• Buyer 01:08:58, 01:20:59, 01:33:30
• Cash Flow (CF) 00:29:10
• Contract 00:12:22, 00:15:06, 00:18:47, 00:23:14, 00:26:12, 00:32:00, 00:36:27, 00:40:36, 00:43:46, 00:53:34, 01:22:07, 01:27:56, 01:38:12
• Cost 01:02:58, 01:10:16
• Deferred Revenue 00:33:04
• Distinct 00:41:52, 00:47:20, 00:53:22, 00:57:14
• Expected Value Method 01:17:10
• FASB - Financial Accounting Standards Board 00:01:46, 00:05:35, 01:37:56
• Financial Statement 00:03:09, 00:06:37, 00:18:00, 00:39:07, 01:38:04
• Generally Accepted Accounting Principles (GAAP) 00:01:00, 00:01:43, 00:06:44, 00:08:18, 00:16:43, 01:39:27
• Input Method 01:35:45
• Interest 01:11:10
• Liability 00:03:30, 00:33:19
• Like-Kind Exchange 00:29:33
• Most Likely Amount Method 01:17:12
• Noncash Consideration 01:19:45
• Non-Profit Organizations (NPO) 00:12:57
• Output Method 01:35:28
• Pro Rata 01:25:59
• Revenue 00:03:36, 00:16:23, 00:32:09, 01:21:04, 01:30:54, 01:35:22
• Revenue Recognition 00:01:01, 00:01:13, 00:02:49, 00:13:01, 00:17:11, 00:39:02, 01:30:53, 01:38:35
• Sale and Leaseback 00:30:09
• Transaction 00:13:21, 00:40:45
• Transaction Price 00:19:10, 01:02:47, 01:03:59, 01:05:48, 01:21:05, 01:22:37, 01:27:34
• Variable Consideration 01:08:02, 01:13:25, 01:17:07, 01:18:19, 01:26:45

Accounting (ACCG): A systematic way of recording and reporting financial transactions for a business or organization.

Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.

Audit: A formal examination of an organization's or individual's accounts or financial situation

Buyer: Someone whose job is to choose and buy the goods that a store will sell

Cash Flow (CF): The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time.

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location

Deferred Revenue: Deferred revenue is a liability related to a revenue-producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

Distinct: To be distinct, a good or service must meet two criteria: It must be capable of being distinct, and. It must be separately identifiable or “distinct within the context of the contract”

Expected Value Method: The expected value method is the sum of probability-weighted amounts in a range of possible consideration amounts; this method may be appropriate in circumstances when variable consideration has to be estimated for multiple outcomes or when there is a large number of contracts that involve variable consideration.

FASB - Financial Accounting Standards Board: The Financial Accounting Standards Board is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public's interest.

Financial Statement: Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. ... A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time.

Generally Accepted Accounting Principles (GAAP): A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. Following these rules is especially critical for all publicly traded companies.

Input Method: The input method measures the efforts or materials expended to satisfy the obligation.

Interest : Interest is the charge for the privilege of borrowing money, typically expressed as annual percentage rate (APR). Interest can also refer to the amount of ownership a stockholder has in a company, usually expressed as a percentage.

Liability: In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

Like-Kind Exchange: A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset.

Most Likely Amount Method: The most likely amount method is the single most likely amount in a range of possible consideration amounts, that is, the single most likely outcome of the contract; this method may be appropriate in circumstances when the number of outcomes is limited (for example, two possible outcomes).

Non-Profit Organizations (NPO): A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrary with an entity that operates as a business aiming to generate a profit for its owners.

Noncash Consideration : Noncash consideration is measured on the date of contract inception at its fair value. If fair value is not determinable, the standalone selling price of the goods or services should be used.

Output Method: The output method measures the results achieved and value transferred to a customer.

Pro Rata: Pro rata refers to a proportional allocation. Under this approach, amounts are assigned based on each participant's proportional share of the whole. In accounting, this means revenues, expenses, assets, liabilities, or other items are proportionally allocated among participants.

Revenue: In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.

Revenue Recognition: Revenue recognition is an accounting principle that outlines the specific conditions under which revenue. In accounting, the terms "sales" and "revenue" can be, and often are, used interchangeably, to mean the same thing. Revenue does not necessarily mean cash received.

Sale and Leaseback: A "sale/leaseback" or "sale and leaseback" is a transaction in which the owner of a property sells an asset, typically real estate, and then leases it back from the buyer. In this way, the transaction functions as a loan, with payments taking the form of rent.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

Transaction Price: The price of a good or service expressed relative to the same quantity of another good or service. Transaction prices help distinguish price changes due to inflation from real price changes.

Variable Consideration: Variable consideration is defined broadly and can take many forms, such as price concessions, rebates or refunds. Consideration is also considered variable if the amount an entity will receive is contingent on a future event occurring or not occurring, even though the amount itself is fixed.