ASC 606 Revenue from Contracts with Customers for Software and Cloud Computing Industries – 06252618SJ

    Dates: Jun 25-26, 2018
  • Location: San Jose, CA

June 25 & 26, 2018
San Jose, CA

ASC 606 Revenue from Contracts with Customers for Software and Cloud Computing Industries

Overall Agenda

Session 1: Introduction – Scope and Objectives

Session 2: Contracts – Validity and Combination

Session 3: Performance Obligations – Identification and Distinct PO;

Session 4: The Transaction Price

Session 5: Allocation of the Transaction Price

Session 6: Contract Modifications

Section 7: Licensing, Gross versus Net Revenue

Session 8: Costs of Contracts (New Subtopic 340-40)

Session 9: Disclosures

Session 10: Transition and Effective Dates

This seminar constitutes a comprehensive review of the guidance in and the implications of ASC 606, relevant IFRS 15 issues and differences, all issued Accounting Standards Updates (ASUs) through the December 2016 ASU 2016-20, and all the Transition Resource Group deliberations. I have incorporated   relevant guidance from the Basis for Conclusions which includes the FASB’s rationale for final guidance and the alternative perspectives considered in developing the guidance. Each session will include a discussion of applicable data collection and IT needs. I have incorporated experience obtained from public and private company implementations that I have managed over the last year.

My seminars are interactive and questions are encouraged. Specific issues addressed include (Not a complete list):

Identification of Performance Obligations in the Contract

     PCS and Stand-ready obligations

     Bilfurcation or not of Technical support (bug fixes and phone support) and
          when-and-if available upgrades and enhancements

     Free Phone Support

     Set-up, implementation, and consulting services

     Essential to Functionality

     Significant Modifications

     Highly interrelated, significant integration, and customization services

Determination of the Transaction Price

     Fixed or Determinable fees

     Variable consideration – sell-through and sell-in arrangements

     Predictive ability of historical evidence

     Use of the residual method to establish standalone selling price

     Significant Financing Component

     Licenses – various issues

     Pricing of renewal options

     Sales- and Usage-based fees

     Consideration Paid to Customers

     Noncash Consideration

Allocation of the Transaction Price

     Elimination of VSOE of FV

     Implications of Standalone Selling Price or Estimated Selling Price

     Allocation of discounts and the exception

     Allocation of Variable Consideration and the exception

     Sales- and Usage-based license revenue

     Interaction of Variable Consideration and Sales- and Usage-based consideration

Revenue Recognition

     When-and-if-available upgrades and enhancements

     Stand-ready Obligations

     Free phone support

     Below normal pricing on renewal of support

     Enterprise and site licenses


     Disaggregation of Revenue

     Contract Assets and Contract Liabilities

     Transaction prices, deferred revenue, and “Backlog”

     SAB 74 and Early Adopter examples

Transition Issues

     Completed Transactions

     Full retrospective versus Modified Retrospective


Cost Capitalization (New Subtopic 340-40)

     Commissions at inception and renewal

     Fringe Benefits and RSU

     Internal Use Software

     Renewal options and the Customer Relationship term




This comprehensive seminar provides an in-depth introduction, review and discussion of the changes to the recognition, measurement, presentation and disclosure of revenue from contracts with customers. The coverage includes implementation and ongoing application guidance with examples and adoption issues tailored to software companies. All deliberations of the Transition Group and Staff will be addressed.  The seminar combines my many years as consultant on revenue reporting and analysis for many industries in the US and many other countries, experience in managing several implementations over the last year, author of one of the most widely used books on revenue recognition, and trainer/instructor on webcasts and live public and on-site seminars on revenue recognition.

Recommended CPE Credits for program: 16 hours; Preparation: None; Level of Knowledge: Intermediate; Field of Study: Accounting; Method of Delivery: Live-Group.

San Jose, CA


Individual registration fee for this two-day course is $1895. 

Corporate Discount is $1645 each for 2 or more from the same company (Save $250 per person). 

Call for additional discounts for 5 or more from the same company. Also call for information about customized on-site seminars.  727-797-1919.

Discount is available for payment by check – call for details.


Registration and a Continental breakfast begins ½ hour before the starting time each day. Day one hours are 8:00-5:15. Day two begins at 8:00 AM and concludes at approximately 4:00 PM.  Lunches are provided.  Dress is business casual.


The registration fee (or applicable discounted rate) is payable in advance. You will receive confirmation of your registration after we have processed your payment. At the program you will receive a comprehensive course manual, refreshment breaks and lunches. Registrants who notify A. C. Sondhi of their intent to cancel at least 14 days prior to the first day of the program may receive either a refund of the fee less an administration charge of up to $200.

A.C. Sondhi & Associates, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.  Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: