Table of Contents

 

Course Learning Objectives. 3

Chapter 1 - Revenue Recognition Principles  Section 1. 1

Learning Objectives. 1

Introduction. 1

Why the Change in the Revenue Recognition Standards?. 2

Evolution of the Revenue Recognition Standard. 2

Scope of the New Revenue Recognition Standards. 5

The Main Provisions. 5

Chapter 1  Section 1 Review Questions. 7

Chapter 1 - Revenue Recognition Principles  Section 2. 8

Step 1: Identify the Contract(s) with a Customer. 8

Step 2: Identify the Performance Obligations in the Contract 13

Chapter 1  Section 2 Review Questions. 18

Chapter 1 - Revenue Recognition Principles  Section 3. 19

Step 3: Determine the Transaction Price. 19

Step 4: Allocate Transaction Price to Performance Obligations. 25

Chapter 1  Section 3 Review Questions. 29

Chapter 1 - Revenue Recognition Principles  Section 4. 30

Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation. 30

Financial Statement Presentation Issues. 34

Disclosure Requirements. 36

Transition Guidance. 42

Chapter 1  Section 4 Review Questions. 45

Chapter 1 - Revenue Recognition Principles  Section 5. 46

Recent Developments. 46

Chapter 1  Section 5 Review Questions. 52

Solutions to Review Questions. 53

Chapter 1  Section 1 Review Questions Feedback. 53

Chapter 1  Section 2 Review Questions Feedback. 55

Chapter 1  Section 3 Review Questions Feedback. 57

Chapter 1  Section 4 Review Questions Feedback. 60

Chapter 1  Section 5 Review Questions Feedback. 62

Glossary of Key Terms. 64

Final Examination. 66