Revenue accounting reset – Recognizing revenue

PwC's accounting podcast

We kick off our latest accounting podcast miniseries on revenue accounting with a foundational discussion on revenue recognition. In this episode, we tackle recognizing revenue —the final step of the ASC 606 model—and examine how to determine whether performance obligations are satisfied over time or at a point in time.

In this episode, we discuss:

• 0:54 – Overview of the ASC 606 revenue model
• 5:30 – Identifying performance obligations satisfied over time
• 11:15 – Identifying performance obligations satisfied at a point in time
• 21:19 – Measures of progress to determine the timing of revenue recognition
• 33:45 – Exceptions to over-time revenue recognition

For more information, see chapter 6 of our Revenue from contracts with customers guide.

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About our guests

Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected]

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1. Revenue accounting reset – Recognizing revenue (00:00:00)

2. Overview of the ASC 606 revenue model (00:00:54)

3. Identifying performance obligations satisfied over time (00:05:30)

4. Identifying performance obligations satisfied at a point in time (00:11:15)

5. Measures of progress to determine the timing of revenue recognition (00:21:19)

6. Exceptions to over-time revenue recognition (00:33:45)