Standard setters will be issuing new revenue recognition rules that will significantly alter the way companies approach the issue of when to recognize revenue in their financial statements. These are accounting rules; why should lawyers care? The new approach focuses on contract terms and conditions.

Lawyers who understand both the current and the new revenue recognition rules can leverage that understanding in their client relationships. Most entities will be affected in some way by these new rules, but certain industries, including technology, telecommunications, entertainment & media, healthcare and real estate may be heavily impacted.

As the key players in negotiating, drafting and interpreting contracts, lawyers are uniquely situated to help clients determine the impact of the new approach and to help evaluate existing agreements as well as draft new agreements taking into consideration the new approach.

This new webinar from Bloomberg BNA will be of interest to outside counsel as well as lawyers in Offices of Chief Counsel who need to understand these new rules and help their companies assess potential impact. Lawyers who review regulatory filings should also be cognizant of the upcoming changes as should tax lawyers who will need to determine the effects of this new approach on tax accounting methods and income tax planning and strategies.

During this live webinar, Lisa M. Starczewski will cover the following topics (with continual emphasis on how this information may impact legal considerations and how lawyers could respond to these new rules):

• Accounting basics, including the significance of “revenue” and “revenue recognition”
• Reasons for the change in the approach to revenue recognition
• When and how revenue is recognized under current U.S. GAAP
• The most significant impacts of the new rules, including discussion of the industries likely to be most affected
• The scope of the new revenue guidance
• How to identify contracts with a customer
• How to identify separate performance obligations within a contract, including how to analyze whether an obligation is “distinct” under the new approach
• How to determine the transaction price, including the way in which variable consideration will be handled under the new rules
• How to allocate the transaction price to each separate performance obligations, with examples from the telecommunications and software industries
• How to determine whether a company is satisfying an obligation at a point in time or over time and, therefore, how the company should recognize revenue related to that obligation
• Key changes in the revenue guidance relevant to recognizing license revenue
• Expanded disclosure requirements
• Effective Date and transition issues
• Potential Impact of the new approach on sales contracts, loan documentation & compensation & benefit plans
• Potential Impact of the new approach on income tax planning and strategies

Educational Objectives

• Review the reasons for the changes to the revenue recognition rules and the difference between the current rules-based standard and the anticipated principles-based standard
• Become familiar with the new 5-step approach to determining when and how to recognize revenue
• Understand the significance of the changes in the revenue rules and the ways in which lawyers can and should help companies assess and plan for their impact

Who should attend this Webinar:

• General Corporate Attorneys
• Corporate Governance Attorneys
• SEC Attorneys
• Attorneys responsible for drafting or reviewing contracts
• Tax Attorneys
• Attorneys in Offices of Chief Counsel
• Accountants

Prerequisite: None
Level: Beginner to Intermediate
Delivery method: Webinar
Recommended CPE & CLE credit: 1.0 credit 

Lisa M. Starczewski, Buchanan, Ingersoll & Rooney P.C.