Revenue Recognition - Allocate the Transaction Price

Overview

The updated revenue recognition standard outlines five steps for proper compliance. At the surface, these steps seem simplistic. However, there are many considerations that should be considered within each step based on your process and industry.  

Objectives

• Explore step four of the revenue recognition model: Allocate the Transaction Price
• Identify example estimation approaches for SSP
• Explore the adjusted market assessment estimation approach
• Identify examples of the adjusted market assessment approach
• Explore the expected cost-plus margin approach
• Identify examples of the expected cost-plus margin approach
• Explore the residual estimation approach
• Identify examples of the residual estimation approach
• Explore how to allocate discounts
• Explore variances between ASC 605 and ASC 606
• Explore how to allocate variable consideration

Highlights

• Revenue Recognition on Contracts with customers