Revenue Recognition Determine the Transaction Price Part 2

Overview

The new 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. Previous courses in this series have covered the standard at a high level and evaluated step one and two of the standard. They are:

• Understanding the Revenue Recognition Standard
• Revenue Recognition: Identify the Contract - Part One
• Revenue Recognition: Identify the Contract - Part Two
• Revenue Recognition: Identify Performance Obligations – Part One
• Revenue Recognition: Identify Performance Obligations – Part Two
• Revenue Recognition: Determine Transaction Price - Part 1
• Revenue Recognition: Determine Transaction Price - Part 2
• Revenue Recognition: Allocate the Transaction Price
• Revenue Recognition: Recognize Revenue

    

This segment is designed to evaluate Step Three of the new model dealing with Determining the Transaction Price.

Objectives

• Explore how rights of return impact transaction price
• Identify how refund liabilities should be handled
• Explore examples related to rights of return and refund liabilities
• Explore how provisions that include a significant financing component impact transaction price
• Explore examples of significant financing components
• Explore how consideration payable to a customer impacts transaction price
• Explore examples on consideration payable to a customer
• Explore how sales based or usage royalties impact transaction price
• Explore examples of sales based and usage warranties.

Highlights

• Revenue Recognition
• Accounting