The accounting world is confronted with three of the most radical changes it has ever faced. Changes to revenue recognition, leases and financial instruments may cause disruption and change for preparers and users. The course aims to explain in no-nonsense fashion who will be affected and how to anticipate and work around their possible adverse consequences.
Course ID: TTRRLFI
FASB’s Triple Threat: Practical Responses to the New Standards for Revenue Recognition, Leases and Financial Instruments
Learning Objectives
- Understand the fundamental principles of the contract- based approach to revenue set out in ASU 2014-09
- Study how basic guidance is interpreted in more complex transactions using extensive implementation examples.
- Become aware of the multiple deliverables and percent of completion issues and their effect on revenue realization.
- Understand how the transition from operating leases to capitalization will affect companies of all sizes
- Learn how the balance sheet treatment of leases will alter financial statement numbers, ratios, and loan covenants
- Become familiar with the right of use model for capitalizing leases
Major Topics
- Why do we need the Big Three projects?
- The asset-based approach to revenue recognition
- The five step model for revenue recognition
- Continuous delivery and percent of completion
- The asset-liability approach to leases and its effect on the balance sheet and loan covenants
- Implementing the right of use model for lessees and lessors
- Implementation and transition considerations
- Financial instruments and commercial entities – how much change should be expect?
- Recognition, Measurement and Impairment
Who Should Attend
Preparers and accountants in public practice who need to understand how these standards are likely to alter their financial reporting.obligations
Fields of Study
AccountingPrerequisites
Prior learning or experience in revenue accounting