Audit and Accounting Guide : Revenue Recognition 2019

Description

ASC 606, Revenue from Contracts with Customers, replaces almost all previously existing revenue recognition guidance, including industry-specific guidance. That means unprecedented changes, affecting virtually all industries and all size organizations. For preparers, this guide provides the comprehensive, reliable accounting implementation guidance you need to unravel the complexities of this new standard. For practitioners, it provides in-depth coverage of audit considerations, including controls, fraud, risk assessment, and planning and execution of the audit. Recent audit challenges are spotlighted to allow for planning in avoiding these new areas of concern. This guide includes 16 industry-specific chapters for the following industries: aerospace and Defense, Airlines, Asset Management, Broker-Dealers, Construction Contractors, Depository Institutions, Gaming, Health Care, Hospitality, Insurance, Not-for-Profits, Oil and Gas, Power and Utility, Software, Telecommunications, and Timeshare.  Read more... Abstract: ASC 606, Revenue from Contracts with Customers, replaces almost all previously existing revenue recognition guidance, including industry-specific guidance. That means unprecedented changes, affecting virtually all industries and all size organizations. For preparers, this guide provides the comprehensive, reliable accounting implementation guidance you need to unravel the complexities of this new standard. For practitioners, it provides in-depth coverage of audit considerations, including controls, fraud, risk assessment, and planning and execution of the audit. Recent audit challenges are spotlighted to allow for planning in avoiding these new areas of concern. This guide includes 16 industry-specific chapters for the following industries: aerospace and Defense, Airlines, Asset Management, Broker-Dealers, Construction Contractors, Depository Institutions, Gaming, Health Care, Hospitality, Insurance, Not-for-Profits, Oil and Gas, Power and Utility, Software, Telecommunications, and Timeshare Content: Intro Audit and Accounting Guide: Revenue Recognition Preface Table of Contents Chapter 1 General Accounting Considerations Introduction Authoritative Status and Effective Date Transitioning to the New Standard Post-Standard Activity Overview of FASB ASU No. 2014-09, Revenue from Contracts with Customers Step 1: Identify the Contract With a Customer Step 2: Identify the Performance Obligations in the Contract Step 3: Determine the Transaction Price Step 4: Allocate the Transaction Price to the Performance Obligations in the Contract Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance ObligationCosts to Obtain or Fulfill a Contract With a Customer Incremental Costs of Obtaining a Contract Costs of Fulfilling a Contract Disclosures Other Topics Presentation of Contract With a Customer Sale With a Right of Return Warranties Principal Versus Agent Customer Options for Additional Goods or Service -- Material Rights Customer's Unexercised Rights Nonrefundable Upfront Fees Licensing Repurchase Agreements Consignment Arrangements Bill-and-Hold Arrangements Customer Acceptance Third-Party Extended Service Warranty Contracts Within the Scope of FASB ASC 606Chapter 2 General Auditing Considerations Introduction Auditing the Five-Step Model of FASB ASC 606 Step 1: Identify the Contract(s) With a Customer Step 2: Identify the Performance Obligations in the Contract Step 3: Determine the Transaction Price Step 4: Allocate the Transaction Price to the Performance Obligations in the Contract Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation Auditing Considerations in the Adoption and Transition to FASB ASC 606 General Audit Considerations Over Revenue RecognitionRisk Assessment and Fraud Risk Under FASB ASC 606 Audit Planning Assignment of Personnel and Supervision Establishing an Overall Strategy Audit Risk Understanding the Entity and Risk Assessment Inquiry Reading and Understanding Contracts Reviewing Process Narratives and Process Flow Diagrams Reviewing Internal Control Manuals, Policy Manuals, or Similar Documentation Discussion Among the Audit Team Assessing the Risks of Material Misstatement Identification of Significant Risks Specific Audit Considerations Over Revenue RecognitionSide Agreements Channel Stuffing Related-Party Transactions Significant Unusual Transactions Nature of Business and Accounting for Revenue Potential Accounting Misstatements Identify the Contract With the Customer Identify the Performance Obligations in the Contracts Determine the Transaction Price Allocate the Transaction Price to the Performance Obligations Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation Consideration of Fraud as it Relates to Revenue