Revenue Recognition Fundamentals - How to Identify Performance Obligations (Course Id 2535)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), including CPAs, accountants, and other financial professionals.

• What is this course about or what problem does this course solve?
  This course addresses the second step in the revenue recognition process—identifying performance obligations—by providing definitions, guidance, and considerations based on ASC 606.

• How can the knowledge from this course be used?
  The knowledge gained from this course can be used to correctly apply the revenue recognition model by identifying performance obligations within contracts, improving compliance and financial reporting accuracy.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding and applying ASC 606 is essential for accurate accounting and compliance, making this course valuable for professionals responsible for financial statements and revenue recognition.

• When is this course relevant or timely?
  This course is especially relevant following the release and implementation of ASC 606 and is kept current with its most recent revision in April 2025.

• How is a course like this consumed or used?
  This self-study course is delivered in a NASBA QAS text format and includes a final exam, with no prerequisites or advance preparation required.

This course provides an overview of the second step in the revenue recognition process – the identification of performance obligations.  This includes a discussion of key definitions and considerations along with the detailed accounting guidance from ASC 606.       

NASBA QAS - Text - NASBA Registry - 2535

Course Learning Objectives

• List the five steps involved in the new revenue recognition model
• Recognize the criteria involved in identifying performance obligations
• Identify post-implementation issues and considerations provided by the FASB

Chapter 1 - Revenue Recognition Fundamentals - How to Identify Performance Obligations

Course Learning Objectives

Course Overview

Introduction

Contract Identification

Identifying Performance Obligations

Promised Goods or Services

Review Questions

Post-Implementation Issues

Options and Material Rights

Pre-Production Activities

Product Warranties

Optional Purchases

Franchisor Considerations

Conclusion

Review Questions

Glossary of Key Terms