With the new Revenue Recognition rules (ASC 605/606) which come into effect on January 1, 2018, companies are scrambling to comply with the new regulations. ASC 605/606 regulations require companies to report revenue using their 2017 methodology (ASC605) compared to revenue recognition using the new revenue recognition regulations (ASC606). The year 2018 represents a transition year, as companies will be required to present comparative financial statements using both the old and new revenue recognition rules. From January 2019, companies will report revenue using the new revenue recognition guidelines.
This webinar presents will examine the mechanics of meeting the new ASC605/606 reporting requirements:
1. Step 1: identify the Contract with the Customer
2. Step 2: Identify the Performance Obligations in the Contract
3. Step 3: Determine the Transactions Price
4. Step 4: Allocate the Transaction Price to the Revenue Obligations in the Contract
5. Step 5: Recognize Revenue When (or As) the Company Satisfies a Performance Obligation