Revenue is an extremely important profit and loss statement top line number that drives bottom line results for all revenue producing companies. Accurate revenue recognition reporting is necessary for internal and also external reporting to maintain investor and creditors’ confidence in an entity. The objective of this course is to provide participants with a practical understanding of the five-step revenue recognition framework under Part I – International Financial Reporting Standards (IFRS) 15, Revenue from Contracts with Customers, and how to apply it. The course will address disclosure requirements, discuss key areas of application challenges, key judgments and provide examples applying the standard. The course has been updated for IASB agenda decisions and topic group discussion areas.

This course will provide participants with a practical understanding of the new five-step revenue recognition framework under Part I – International Financial Reporting Standards (IFRS) 15 and how to apply it. The 5-step model framework includes:

• Step 1: Identify the Contract with the Customer
• Step 2: Identify the Performance Obligations
• Step 3: Determine the Transaction Price
• Step 4: Allocate the Transaction Price
• Step 5: Recognize Revenue, including How and When
  • Areas of Application Challenge

The course will address disclosure and presentation requirements, application guidance on various topics, and key judgments in applying the standard.

Topics Include:

• Overview and scope, including transitional requirements.
• The 5-step model framework, including how to apply it.
• Practical challenges and considerations and current developments.
• Disclosure and presentation requirements.
• Other application guidance on various topics such as warranties, licences, capitalization of costs of obtaining and fulfilling a contract, contract modifications etc.

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants will be able to:

• Understand the core principles, concepts and, scoping requirements.
• Be able to apply and analyze the 5-step model, including the specific criteria, provisions and exemptions governing each step in the model.
• Although revenue recognition rules are generally complex, real-life examples will be used to show how to effectively apply the model to various products and service sales transactions in various industries.
• Identify and apply presentation and disclosure requirements, including those that may have in-practice challenges.
• Recognize and observe examples of other application guidance in the standard.  
• Understand current developments and areas of accounting discussion.