Advanced Revenue Recognition: Mastering Complex Accounting Principles

Introduction:

Advanced Revenue Recognition is crucial for accurate financial reporting, especially in industries with complex contracts. This comprehensive training course equips participants with the specialized knowledge and skills to navigate intricate revenue recognition principles and their practical application. Participants will learn how to interpret and apply IFRS 15 and ASC 606, handle complex contract scenarios, and ensure compliance with evolving standards. This course bridges the gap between accounting theory and real-world implementation, empowering professionals to drive financial reporting accuracy.

Target Audience:

This course is designed for financial professionals involved in revenue recognition, including:

• Accountants
• Financial Analysts
• Auditors
• Controllers
• Revenue Managers
• Anyone responsible for financial reporting and contract accounting

Course Objectives:

Upon completion of this Advanced Revenue Recognition training course, participants will be able to:

• Understand the advanced principles of IFRS 15 and ASC 606.
• Apply the five-step revenue recognition model to complex contracts.
• Identify and account for variable consideration and contract modifications.
• Understand the impact of performance obligations and transaction prices.
• Analyze and account for contract costs and contract assets/liabilities.
• Apply revenue recognition principles to specific industries and scenarios.
• Understand the disclosure requirements for revenue recognition.
• Analyze the impact of revenue recognition on financial statements.
• Ensure compliance with evolving revenue recognition standards.
• Enhance their ability to interpret and apply complex accounting principles.
• Improve their efficiency and accuracy in revenue recognition.
• Contribute to improved financial reporting and transparency.
• Stay up-to-date with the latest interpretations and guidance on revenue recognition.
• Become a more valuable and sought-after revenue recognition expert.
• Understand ethical considerations in revenue recognition.
• Learn how to use revenue recognition software and tools effectively.

DURATION

10 Days

COURSE CONTENT

Module 1: Foundations of Advanced Revenue Recognition

• Introduction to IFRS 15 and ASC 606: Overview and objectives.
• Understanding the five-step revenue recognition model.
• Key concepts: contract, performance obligation, transaction price, allocation.
• The importance of professional judgment in revenue recognition.
• Ethical considerations in revenue recognition.

Module 2: Identifying the Contract with a Customer

• Defining a contract and its essential elements.
• Analyzing contract existence and enforceability.
• Understanding contract combinations and modifications.
• Identifying multiple contracts and their accounting implications.
• Practical examples and case studies.

Module 3: Identifying Performance Obligations

• Defining performance obligations and distinct goods or services.
• Analyzing single and multiple performance obligations.
• Understanding series of distinct goods or services.
• Identifying implied performance obligations.
• Practical examples and case studies.

Module 4: Determining the Transaction Price

• Understanding the concept of transaction price.
• Analyzing variable consideration and its estimation.
• Dealing with significant financing components.
• Understanding noncash consideration and customer options.
• Practical examples and case studies.

Module 5: Allocating the Transaction Price

• Understanding the principles of transaction price allocation.
• Using standalone selling prices for allocation.
• Applying estimation techniques for standalone selling prices.
• Allocating discounts and variable consideration.
• Practical examples and case studies.

Module 6: Recognizing Revenue When (or as) Performance Obligations are Satisfied

• Understanding the concept of control transfer.
• Recognizing revenue over time vs. at a point in time.
• Applying methods for measuring progress towards satisfaction.
• Dealing with output and input methods.
• Practical examples and case studies.

Module 7: Contract Modifications and Changes

• Understanding the accounting for contract modifications.
• Analyzing separate new contracts and modifications as if part of the existing contract.
• Dealing with cumulative catch-up adjustments.
• Understanding the impact on performance obligations and transaction prices.
• Practical examples and case studies.

Module 8: Variable Consideration and Contingent Payments

• Understanding the estimation of variable consideration.
• Applying the constraint on variable consideration.
• Dealing with refunds, discounts, and rebates.
• Analyzing contingent payments and their accounting treatment.
• Practical examples and case studies.

Module 9: Contract Costs and Contract Assets/Liabilities

• Understanding the accounting for contract costs.
• Analyzing costs to obtain and fulfill a contract.
• Recognizing contract assets and liabilities.
• Dealing with impairment of contract assets.
• Practical examples and case studies.

Module 10: Specific Industry Applications

• Applying revenue recognition principles to specific industries (e.g., software, telecommunications, construction, real estate).
• Analyzing industry-specific challenges and solutions.
• Understanding the impact of revenue recognition on industry-specific metrics.
• Practical examples and case studies for different industries.

Module 11: Disclosure Requirements

• Understanding the disclosure requirements of IFRS 15 and ASC 606.
• Developing effective disclosure strategies.
• Analyzing the impact of disclosures on financial statement users.
• Preparing comprehensive revenue recognition disclosures.
• Practical examples and case studies.

Module 12: Transition and Implementation Challenges

• Understanding the challenges of transitioning to IFRS 15 and ASC 606.
• Developing effective transition plans.
• Analyzing the impact on systems, processes, and controls.
• Practical guidance on implementation and change management.
• Addressing common implementation issues.

Module 13: Revenue Recognition and Technology

• The role of technology in revenue recognition compliance.
• Using revenue recognition software and tools.
• Analyzing the impact of data analytics and automation.
• Understanding the implications of blockchain and AI.
• Exploring the future of technology in revenue recognition.

Module 14: Auditing Revenue Recognition

• Understanding the auditor's perspective on revenue recognition.
• Analyzing key audit risks and control considerations.
• Developing effective audit procedures for revenue recognition.
• Understanding the role of professional skepticism.
• Practical guidance on auditing complex revenue arrangements.

Module 15: Advanced Topics and Case Studies

• Analyzing complex case studies related to revenue recognition.
• Applying advanced techniques for dealing with complex contracts.
• Understanding the impact of revenue recognition on financial metrics.
• Exploring emerging trends and developments in revenue recognition.
• The future of revenue recognition and continuous learning.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.