Title: Revenue Recognition: Rules and Standards

Course ID: AACDPRR09  
CPE Hours: 2.5

Format: PDF

Author: Dr. Jae Shim

Price: $23.50
 

Course Description:
Click here for outline of course
Click here for copy of the exam

Revenue recognition is under a lot of scrutiny. Quite a few companies have been revising their financial statements in recent years and the most frequent reason for restatement is revenue recognition.  This course covers the accounting, reporting, and disclosures associated with revenue recognition for the sale of products or rendering of services. Revenue involves a gross increase in assets or decrease in liabilities. Revenue may be recognized at the time of sale or service, during production, at the completion of production, and at the time of cash receipt. Long-term construction contracts may be accounted for under the percentage-of-completion method or the completed contract method. When a right of return exists, revenue may or may not be recognized, depending on the circumstances. The accounting treatment of warranty and maintenance contracts, contributions, and computer software is also discussed.

Delivery: Internet/Interactive

NASBA Category: Accounting

Learning Objective:

 After completing this course, participants should be able to:

• Give some examples of accounting irregularities and scandals involving revenue recognition.
• List some reasons for financial restatements.
• Apply the revenue recognition principle.
• Describe accounting issues involved with revenue recognition at point of sale.
• Apply the percentage-of-completion method for long-term contracts.
• Apply the completed-contract method for long-term contracts.
• Describe the installment-sales and cost-recovery methods of accounting.
• Explain SFAS 116 requirements for accounting for contributions
• Distinguish between accounting for separately priced and not separately priced warranty and maintenance contracts
• Apply AICPA SOP:97-2 to software revenue recognition

Level: Intermediate

Prerequisites: Have an understanding of financial statement practices

Reviewed/Updated: May 2009