Revenue Recognition Principles: Financial Accounting Guide

Name: Revenue Recognition Principles: Financial Accounting Guide
Rating: 3.2 (17 reviews)

Unlock the complexities of Revenue Recognition with comprehensive principles, examples, and methodologies

Created byEDUCBA Bridging the Gap

Last updated 10/2024

English

What you'll learn

The course gives a detailed overview on recognizing revenue
It explains as to how an entity meets the requirements for recognition and measurement, impairment, de-recognition of revenue while maintaining their financials
learn revenue recognition, their basis of accounting, revenue recognition principle, advances, timing of recognition, various methods to recognize revenue
This training is in line with the IFRS standards
In this course, students will gain a deep understanding of Revenue Recognition, covering essential principles, accounting basics, timing of recognition
Practical examples, and the impact of IFRS 15.
Dive into revenue recognition methods, explore telecom-specific scenarios, and distinguish between IFRS and US GAAP.
Master the intricacies of contract modifications, incentives, and the operating cycle.
This comprehensive program equips learners with the knowledge needed to navigate the nuances of revenue recognition effectively.

Course content

6 sections • 34 lectures • 3h 17m total length

Introduction to Revenue Recognition5:56
Define revenue, explain when to recognize it, and compare IFRS 15 and FASB convergence, including presentation, disclosures, and methods for services, goods, and technology companies.

Basis of Accounting6:19
Compare accrual and cash basis accounting, detailing revenue recognition when earned and expenses matched under accrual, with cash basis recognizing revenue on cash receipt.
Revenue Recognition Principle4:48
Apply the revenue recognition principle to accrual accounting by recognizing revenue only when it is realized or earned and when the risks and rewards transfer, in line with matching principle.
Revenue Recognition Principle Continues8:22
Revenue Recognition5:16
Explore revenue recognition principles by applying stage of completion to contracts—from installation and customized software development milestones to tuition over the instructional period, and reporting media commissions and services provided.
Advances5:47
Timing of Recognition6:56
Timing of Recognition Continues6:29

Working on Example 211:03
Working on Example 36:46
Explain revenue recognition for layaway under perpetual inventory: recognize revenue on delivery, treat deposits as liabilities, and record final sale with inventory and cost of goods sold.
Working on Example 42:29
Working on Example 54:05
Analyze two revenue recognition schemes for intercompany sales: scheme a records a 12.5% commission on 140 million; scheme b records sales, cost of sales, and 35 million gross profit.
Working on Example 62:43
Allocate the $30,000 sale between washing machine and warranty on a pro rata basis, recognizing $25,714 for the product now and $4,286 for the warranty over its life.

Recognize Revenue Interest and Loyalty7:35
Percentage of Completion Method7:42
Revenue Recognition Method2:19
Compare revenue recognition methods: sales basis, percentage of completion, completed contract, cost recoverability, and installment, focusing on when revenue is recognized, measurable costs, and payment assurance.
Revenue Operating Cycle5:16
Franchise3:09
Working on Example 711:11
Example 7 Continues2:15
Installment Sales2:28
Impact of IFRS 1511:41
Impact of IFRS 15 Continues12:01

Revenue Recognition Telecom2:37
Revenue of Telecom Companies5:45
Contract Modification3:26
Contract Modification Continues3:29
Explore how IFRS 15 governs revenue recognition in a telecom contract by allocating the transaction price between the subsidized handset and the service plan, recognizing service revenue over two years.
Incentives Offered and Set Boxes11:25
Assess incentives like free devices or services and determine whether they create performance obligations affecting revenue recognition under IFRS 15 and IFRS 16, including set top boxes and portfolio considerations.

Requirements

Passion to Learn, Interest in finance and accounting, Basic knowledge of accounting terms and concepts

Description

Welcome to "Mastering Revenue Recognition Principles," a comprehensive course designed to deepen your understanding of the intricate world of financial accounting. In this course, we embark on a journey to unravel the complexities surrounding revenue recognition, a cornerstone of financial reporting.

Section 1: Introduction

Our exploration begins with a captivating introduction to the significance of revenue recognition in financial accounting. Through preview-enabled lectures, we offer a sneak peek into the pivotal role revenue recognition plays in shaping accurate financial statements.

Section 2: Basis of Accounting and Revenue Recognition

Delve into the foundational aspects of accounting principles and the intricacies of revenue recognition. Preview-enabled lectures guide you through the essential concepts, providing a solid base for the detailed exploration that follows.

Section 3: Example

Theory meets practice in this section as we tackle real-world examples. Engage in hands-on exercises to apply revenue recognition principles to diverse scenarios, honing your problem-solving skills and gaining practical insights.

Section 4: Method

Uncover various methods employed in revenue recognition, including the Percentage of Completion Method and Revenue Operating Cycle. Understand the impact of critical standards like IFRS 15 and explore scenarios involving franchises and installment sales.

Section 5: Recognize Revenue

Delve deeper into the nuanced process of recognizing revenue. Through lectures and practical examples, gain insights into recognizing revenue in different contexts. A comparative analysis of IFRS and US GAAP broadens your perspective on global practices.

Section 6: Telecom

Specialize your knowledge in revenue recognition challenges specific to the telecom industry. Navigate scenarios related to contract modifications, incentives, and set-top boxes. Acquire industry-specific insights for confident decision-making in the telecom financial landscape.

Join us on this educational voyage as we empower you with the knowledge and skills needed to master revenue recognition principles. Let's embark on this journey together!

Who this course is for:

This course is designed for finance professionals, accountants, auditors, and individuals interested in gaining a deep understanding of revenue recognition principles. It is particularly beneficial for those working in industries with complex revenue structures, such as telecommunications. Whether you're a seasoned professional or a student aspiring to enter the finance and accounting field, this course provides valuable insights into the intricacies of revenue recognition practices.
Professionals (majorly Accountants, Auditors, Accounting Consultants, and Chartered Financial Analysts etc.) who want to excel in global organizations by learning about global standards that ply in their working.
Anyone who wants to learn about International Financial Reporting Standards and improve the knowledge about the working of organizations on a global level.

Revenue Recognition Principles: Financial Accounting Guide

What you'll learn

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Course content

Introduction1 lecture • 6min

Basis of Accounting and Revenue Recognition7 lectures • 44min

Example5 lectures • 27min

Method10 lectures • 1hr 6min

Recognize Revenue6 lectures • 28min

Telecom5 lectures • 27min

Requirements

Description

Who this course is for: