Revenue Recognition: IFRS 15 & ASC 606 Five-Step Model in Excel
Performance obligations, variable consideration and the constraint, SSP estimates and allocation, over-time revenue with cost-to-cost, a monthly software schedule, contract balances, modifications and principal vs agent: 8 labs on one technology company.
The first lesson is free — no account needed.
About this course
A revenue recognition course that applies the IFRS 15 and ASC 606 five-step model to one fictional technology company's contracts in a spreadsheet, for accountants, auditors and finance students. You identify the performance obligations in a retail contract, estimate variable consideration with the expected value and the most likely amount and apply the constraint, estimate stand-alone selling prices three ways, allocate the bundle price and test the residual approach, recognise a three-year automation project over time with the cost-to-cost method as the estimate changes, build a monthly schedule for a licence, support and implementation bundle, roll deferred revenue forward and classify contract assets and liabilities, account for contract modifications and decide principal versus agent. An educational summary, not the text of the standards and not accounting advice. The first lab is free.
Lessons
- The Five-Step Model: Finding the Performance ObligationsFree
- Transaction Price: Variable Consideration & the Constraint Pro
- Allocating the Price: Estimating SSPs & the Residual Approach Pro
- Over Time vs Point in Time: Progress with the Cost-to-Cost Method Pro
- Software Bundle: Licence, Support & Implementation Month by Month Pro
- Contract Assets, Contract Liabilities & the Deferred Revenue Roll-Forward Pro
- Contract Modifications: Separate Contract, Prospective or Catch-Up Pro
- Principal vs Agent: Gross or Net Revenue, and the Journal Pro