The Beehive - Business and Finance Podcast
The Beehive offers in-depth analysis and expert insights into the complex world of business and finance. Brought to you by Scrubbed, we delve into the latest industry trends, regulatory changes, and best practices. Tune in for actionable advice to navigate your journey with confidence.
Visit our webpage to learn more, https://scrubbed.net/podcasts/
The Beehive - Business and Finance Podcast
Revenue Recognition: Clarity in a Complex Landscape
In this episode, Scrubbed’s technical accounting experts Gliezel David and Junel Mamaril offer an in-depth look at the challenges and nuances of revenue recognition. From identifying contracts to satisfying performance obligations, they’ll guide us through the Five Steps of Revenue Recognition and explain how the Principal vs. Agent consideration can significantly impact financial outcomes.
Key topics:
● Identifying contracts: challenges of unwritten contracts and assessing collectability
● Identifying performance obligations: how to determine if a promise within a contract is distinct, using examples from the Software as a Service (SaaS) industry.
● Determining the transaction price: how to account for significant financing components, non-cash considerations, and variable considerations
● Allocating transaction price to each performance obligation: using standalone selling prices and addressing the challenges when these prices are not readily available.
● Recognizing revenue: assessing progress over time, transfer of control at a point in time, and, principal vs agent analysis