IFRS 15 - Revenue Recognition

Overview:

Any monumental task becomes manageable when broken down into smaller steps. The complex process of revenue recognition is no exception to this rule. Revenue is an extremely important profit and loss statement top-line number that drives bottom-line results for all revenue-producing companies. Accurate revenue recognition reporting is necessary for internal and also external reporting to maintain investors and creditors’ confidence in an entity.  The objective of this course is to provide you with a practical understanding of the five-step revenue recognition framework under Part I – International Financial Reporting Standards (IFRS) 15, Revenue from Contracts with Customers, and how to apply it.

The 5-step model framework includes:

1. Step 1: Identify the contract with the customer
2. Step 2: Identify the performance obligations
3. Step 3: Determine the transaction price
4. Step 4: Allocate the transaction price
5. Step 5: Recognize revenue, including how and when
6. Areas of Application Challenge

The course will address disclosure requirements, discuss key areas of application challenges, key judgments, and provide examples applying the standard. This course has been updated for IASB agenda decisions and topic group discussion areas.  We will also address disclosure and presentation requirements, application guidance on various topics, and key judgments in applying the standard.

Course Content:

In this course, you will gain knowledge about the following topics:

• Overview and scope, including transitional requirements the 5-step model framework, including how to apply it:
  • Step 1: Identify the contract with the customer
  • Step 2: Identify the performance obligations
  • Step 3: Determine the transaction price
  • Step 4: Allocate the transaction price
  • Step 5: Recognize revenue, including how and when
• Practical challenges and considerations and current developments
• Disclosure and presentation requirements
• Other application guidance on various topics such as warranties, licences, capitalization of costs of obtaining and fulfilling a contract, contract modifications, etc.

Learning Objectives:

Upon completing this course, you should be able to:

• Understand the core principles and concepts, scoping requirements
• Be able to apply and analyze the 5-step model, including the specific criteria, provisions, and exemptions governing each step in the model
• Although revenue recognition rules are generally complex, real-life examples will be used to show how to effectively apply the model to various products and service sales transactions in various industries 
• Identify and apply presentation and disclosure requirements, including understanding key changes and practice challenges
• Recognize and observe examples of other application guidance in the standard
• Understand current developments and areas of accounting discussion

Who Will Benefit: 

Professionals who are responsible for the oversight of revenue recognition as well as the associated accounting and/or auditing functions.