Revenue Recognition

Author: Dr. J Shim - Delta Publishing
Copyright © 2010

Field of Study: Accounting
Level: Basic
Recommended CPE Credit 3 hours
Prerequisites: None
Advanced Preparation: None
Type of Delivery: Self-Study
Expiration: Course expires 1 year after purchase
Course Update: June, 2009
Accreditation: QAS, NASBA
Guarantee/Complaint Resolution

Course Outline


Lesson 1 - Revenue Recognition
Learning Objectives 1
Points of Controversy
Revenue Accounting
Channel Stuffing
Financial Restatements
Service Sales Revenue


Lesson 2 - Revenue Recognition Methods
Learning Objectives 2
Major Methods
Realization
Completion of Production
During Production
Cash Basis
Installment Sales Method
Cost Recovery Method


Lesson 3 - Contracts
Learning Objectives 3
Long Term Construction Contracts
Contract Costs
Contract Types
Aggregating and Segmenting Contracts
Contract Options
Claims
Common Construction Contract Methods
Percentage of Completion Method
Completed Contract Method
Government Contract Accounting


Lesson 4 - Revenue Recognition Regulations
Learning Objectives 4
Revenue Recognition When a Right Of Return Exists
Vendor Consideration To Customer
Multiple Deliverables
Reimbursements Received
Miscellaneous Revenue Concerns
Software Revenue Recognition
Contributions
Research and Development Revenues
Equity Instruments Received For Licensing Fees
Warranty and Maintenance Contracts
Barter Transactions

Course Objectives

Lesson - 1
After completing this course, you should be able to:
  • Give some examples of accounting irregularities and scandals involving revenue recognition
  • List some reasons for financial restatements
Lesson - 2
After completing this course, you should be able to:
  • Apply the revenue recognition principle.
  • Describe accounting issues involved with revenue recognition at point of sale.
  • Describe the installment-sales and cost-recovery methods of accounting.
Lesson - 3
After completing this course, you should be able to:
  • Apply the percentage-of-completion method for long-term contracts.
  • Apply the completed-contract method for long-term contracts.
Lesson - 4
After completing this course, you should be able to:
  • 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