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

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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

  1. Contract Validity, Combination and Modifications
  2. Performance Obligations: Identification of Promises, Immaterial Promises, and Distinct Obligations
  3. Products and Services: Definition, Transfer of Control, and Measures of Progress
  4. Measurement: Standalone Selling Prices, ESP, and the Residual Method
  5. Measurement: Contract Consideration and Allocation
  6. Licensing
  7. Principal versus Agent and Bill and Hold Issues
  8. ASC 340-40: Cost Deferral
  9. Disclosure
  10. 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


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.

Milpitas, 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.