Identifying the contract – The first step in recognizing revenue

PwC's accounting podcast

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Our revenue miniseries continues with identifying the contract, the first step in the five-step model in the revenue standard. It's important to get this step right to appropriately apply the model for recognizing revenue.
In this episode, we discuss:

• 4:10 – The five criteria to have a contract with a customer under the revenue standard
• 8:23 – The impact of master services agreements and enforceable rights
• 16:03 – Assessing collectibility of the consideration in the contract
• 27:08 – Determining the contract term

For more information, read chapter 2 of our Revenue guide. Also, to hear more on revenue topics, listen to the first episode in this miniseries, Gross versus net revenue: Is your company the principal or agent?. Additionally, follow this podcast on your favorite podcast app for more episodes.
Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike 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.
Pat Durbin is a Deputy Chief Accountant in PwC’s National Office. 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.
Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s quarterly webcast series.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [e-mail].

章节

1. Identifying the contract – The first step in recognizing revenue (00:00:00)

2. The five criteria to have a contract with a customer under the revenue standard (00:04:10)

3. The impact of master services agreements and enforceable rights (00:08:23)

4. Assessing collectibility of the consideration in the contract (00:16:03)

5. Determining the contract term (00:27:08)