Stepping into the shoes of an outside technical consultant, each participant must perform an ASC 606 assessment for Quality Tiles, Inc. (QTI), a company recently acquired by Home Décor and More, Inc. (HDM). HDM management needs to ensure the company is in compliance with GAAP related to revenue recognition before the next board meeting. Participants will meet with GTI’s controller and must strategically ask the right questions. Based on the information received, they will apply guidance in ASC 606, which can be complex, to a series of revenue recognition considerations to determine if revenue is being recognized appropriately.
- Application of ASC 606 to contractual situations
- Identifying key information necessary to apply ASC 606
- Assessing compliance with the guidance of ASC 606
- Recall the key elements of the 5-step revenue recognition approach under ASC 606
- Identify the key information necessary to assess revenue recognition under ASC 606
- Assess the appropriateness of revenue recognition approaches
Accounting and auditing practitioners who are beginning their careers in public accounting