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June 20 & 21, 2019
Milpitas, CA
ASC 606 Revenue from Contracts with Customers for Software and Cloud Computing Industries
Many public business entities are close to or have completed the initial implementation and filed one or more reports with the SEC. This seminar provides insights learned from implementations I have completed as well as ones I am currently advising clients. I have been involved with several solution providers and a few of my clients have or are implementing solutions. Lessons gleaned from solution implementation are discussed throughout this seminar. SEC Comment letters are reviewed to highlight reporting risks. This comprehensive seminar will help you apply ASC 606 more efficiently, develop or complete a comprehensive revenue reporting policy, provide insights into software solutions and help reduce or eliminate reporting risks.
Overall Agenda
- Contract Validity, Combination and Modifications
- Performance Obligations: Identification of Promises, Immaterial Promises, and Distinct Obligations
- Products and Services: Definition, Transfer of Control, and Measures of Progress
- Measurement: Standalone Selling Prices, ESP, and the Residual Method
- Measurement: Contract Consideration and Allocation
- Licensing
- Principal versus Agent and Bill and Hold Issues
- ASC 340-40: Cost Deferral
- Disclosure
- Data and System needs; SEC Comment Letters
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 enhancement
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
Disclosures
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
Disclosures
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
Disclosures
WHO SHOULD ATTEND, OBJECTIVES AND PRERERQUISITES
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.
LOCATION
Milpitas, CA
FEES AND DISCOUNTS
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.