ASC 606 Insights: Timing of Revenue Recognition & Principal vs. Agent Considerations 

Course Overview:

This course provides an overview of critical challenges companies encounter under ASC 606, emphasizing several key areas that can be particularly challenging for effective revenue recognition. This includes distinguishing between recognizing revenue over time versus at a point in time as well as  principal versus agent considerations. 

Learning Objectives:

Upon completion of this course, you will be able to:

• Identify factors that influence the determination of control transfer in a contract
• Recognize implications of transferring control over time versus at a specific point in time
• Distinguish between obligations that satisfy control transfer over time vs. at a point in time
• Determine the significance of contract terms in assessing when control transfers to a customer
• Identify key factors that determine whether an entity acts as a principal or an agent
• Recognize the impact of principal vs. agent classifications on revenue recognition
• Determine steps for accurately assessing principal and agent roles in revenue transactions
• Recognize best practices for conducting principal vs. agent evaluations