Revenue Recognition - Determine the Transaction Price - Part 1

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

• Identify considerations when evaluating transaction price
• Explore the concepts of variable consideration
• Identify methods to determine variable consideration
• Explore the concept of variability constraints
•  Identify what constitutes implied variability
• Practice your knowledge with examples

Highlights

• Revenue Recognition
• Accounting