Vermont Society of Certified Public Accountants
Surgent's Revenue Recognition in the Technology Sector: Topic 606 Implementation Challenges
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- Apr 9, 2021, 9:00am–12:30pm
- SURGENT MCCOY SELF-STUDY CPE, LLC
- CPE Credits:
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Change is definitely coming. For those entities currently following industry-specific accounting guidance for revenue recognition, Topic 606 will be replacing this with a single model. For those in the technology sector that utilize Statement of Position 97-2, Software Revenue Recognition (SOP 97-2/ASC 985-605), adopting Topic 606 will most likely result in significant changes to when you recognize revenue, particularly with regard to contracts with multiple performance obligations. With the requirement to have vendor-specific objective evidence (VSOE) to support the allocation of transaction price going away under Topic 606, technology companies will also see major change in how they allocate transaction price, which will impact when they record revenue on these transactions.
Even with the FASB's recent deferral, Topic 606's effective date is here. Now is the time to get the answers to your implementation questions. In this course, we'll explore Topic 606 from the perspective of entities that currently recognize revenue under SOP 97-2. We'll highlight the changes that Topic 606 makes to the guidance found in the SOP and focus on the impact that software entities should expect when implementing this new guidance. Lastly, we'll review the financial reporting impact of changes that many companies are making to their revenue recognition processes as a result of COVID-19.
Implementing Topic 606 will be a challenge for software entities, and this course will help you identify and resolve these issues so that you can complete your adoption strategy.
- Identify the five steps of Topic 606’s new revenue recognition model
- Determine how to allocate transaction price to performance obligations under Topic 606
- Apply Topic 606’s guidance in other areas of interest to entities currently using SOP 97-2
- Recall best practices and lessons learned from others implementing Topic 606
- Topic 606’s five-step revenue recognition model
- Changes in accounting guidance between Topic 606 and SOP 97-2/ASC 985-605
- Allocation approaches of transaction price under Topic 606
- Accounting considerations related to COVID-19-driven changes to revenue recognition processes
- Other unique implementation issues for entities currently using SOP 97-2/ASC 985-605 for revenue recognition purposes
- Lessons learned and best practices from entities already adopting Topic 606
Accounting and auditing practitioners at all levels desiring to understand the challenges in applying Topic 606 for those in the software industry
Experience in accounting and auditing