Accounting for Income: Practical Workshop

OBJECTIVES

This session will take a practical look at the new income recognition requirements for periods commencing 1 January 2026 under FRS 102. The session will contain worked examples and case studies to illustrate the points made.

KEY TOPICS

The session will cover the following, using worked examples and case studies to aid learning:

NEW FRS 102

• Effective date
• Implications

REVENUE RECOGNITION

• Current requirements
• New revenue recognition requirements
• Five-step model approach
• Step 1: Identify the contract(s) with a customer
• Step 2: Identify the performance obligations in the contract
• Step 3: Determine the transaction price
• Variable consideration
• Sales-based or usage-based royalties
• Refund liabilities
• Sale with a right of return
• Time value of money
• Non-cash consideration
• Consideration payable to a customer
• Step 4: Allocate the transaction price to the promises in the contract
• Step 5: Recognise revenue when (or as) the entity satisfies a promise

INCOME TRANSITION ISSUES

• Practical impact
• INCOME DISCLOSURE ISSUES
• Next PLC
• Tesco PLC

WHO SHOULD ATTEND

This course is relevant for all those who will be preparing or advising on accounts prepared under FRS 102 (September 2024).