logo
episode-header-image
Mar 2022
33m 24s

Revenue toolkit: Step three—Determine th...

PWC
About this episode

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering each of the five steps in the revenue recognition model.

In this episode, Heather Horn was joined by Angela Fergason and Alexandra Pascu from PwC’s National Office, to discuss step three of revenue recognition: determining the transaction price.

In this episode, you will find:

  • 3:18 - Determining whether the contract contains significant financing components
  • 7:52 - How noncash and variable consideration impact the transaction price
  • 12:32 - Methods for estimating variable consideration, and considering the measurement constraint
  • 19:54 - The key judgments needed for service level agreements or similar arrangements
  • 24:54 - Evaluating payments to customers as a form of variable consideration, and how they impact the transaction price
  • 26:58 - Key takeaways: step three in a nutshell, and additional resources

Want to learn more? 

Angela Fergason is a partner in PwC's National Office with over 20 years of experience who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Angela is a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on revenue and stock-based compensation.

Alexandra Pascu is a director in PwC’s National Office with over 9 years of experience. She focuses on revenue recognition, software costs, stock-based compensation, and inventory. Prior to this role, Alexandra  led audits of companies ranging from small emerging growth companies to public multinationals.

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Up next
Jul 8
Lease accounting reset - Embedded leases
We continue our lease accounting podcast miniseries with an episode focused on embedded leases. Some arrangements to provide services or purchase inventory rely on the use of a specific asset to fulfill the contract. Even if the word “lease” doesn’t appear, the rights conveyed to ... Show More
45m 11s
Jul 1
Lease accounting reset – Variable rents
We continue our lease accounting miniseries with a focus on variable lease payments, an area that can significantly influence lease classification and measurement. In this episode, we explore the complexities of usage-based and index-based payments, fair market rent adjustments, ... Show More
35m 44s
Jun 26
Sustainability now: ISSB clarifying greenhouse gas disclosures
A video of this podcast is available on YouTube, Spotify, or PwC’s website at viewpoint.pwc.comIn this episode, we highlight the proposed amendments to IFRS S2, the climate-related disclosure standard from the International Sustainability Standards Board (ISSB). Learn how the cha ... Show More
27m 27s
Recommended Episodes
Apr 2024
Money in and Money Out: Accounting for your Payments and Invoices.
Congratulations, you’ve branched out into your own business and even found your first client or customer! Now what? As the orders come in, so do the invoices and payments. In this episode, hosts Austin and Jannese talk about the ins and outs of keeping organized books, tracking p ... Show More
29m 39s
Dec 2020
1: Introduction to Mastering Your Small Business Finances
Welcome to the first episode of Mastering Your Small Business Finances, where we introduce to you our host and the 3 goals of this podcast as well as topics we will be discussing in future episodes such as finances, entrepreneurship, money management, leadership, bookkeeping and ... Show More
7m 1s
May 2023
Pricing Strategy For Consultants - How To Raise Your Fees With Jenny Millar: Podcast #292
There is more to pricing than just numbers. It is also rooted in optimizing performance and nudging customer behaviors. Helping you figure out your pricing strategy, Michael Zipursky sits down with Jenny Millar, the Founder of Untapped Pricing. Jenny tells us more about the psych ... Show More
44m 5s
Aug 2023
Jeb Blount Solves Mastermind Group Incredible’s Sales Challenges
Mastermind Group Incredible Asks Jeb Blount Their Toughest Sales Questions In this episode of the Sales Gravy Podcast, Mastermind Group Incredible asks Jeb Blount their real-life questions as he provides solutions to overcome their toughest sales challenges. Some of their questio ... Show More
1h 7m
Apr 2023
Money Talks: Why oh why EY?
The professional services firm EY reportedly spent hundreds of millions of dollars preparing to split itself into separate audit and advisory companies. Then earlier this month it abruptly called the divorce off. EY is not unique. All of the "big four" accounting firms - includin ... Show More
32m 23s
Apr 2023
Money Talks: Why oh why EY?
The professional services firm EY reportedly spent hundreds of millions of dollars preparing to split itself into separate audit and advisory companies. Then earlier this month it abruptly called the divorce off. EY is not unique. All of the "big four" accounting firms - includin ... Show More
32m 23s
May 2024
The Five-Minute Investor from Money Clinic: What is a yield?
Like an interest rate on a savings account, investment yields show us how much income different investments are able to generate. But how are yields calculated, and how can they measure the returns on different types of investments including shares, bonds and property? In our new ... Show More
7m 29s
May 2024
Unpacking the Global State of Business Analysis
Susan and Scott talk with Eno Eka, Founder of Business Analysis School, about the Global State of Business Analysis (GSBA), the report from IIBA's annual survey that shares insights from business analysis professionals from all over the world. Resources: The video version of ... Show More
38m 28s
Aug 2023
Summer School 6: Operations and 25,000 roses
"It's difficult to control everything," says our guest professor for this week, Santiago Gallino. "What is not difficult is to plan for everything." Today we venture into the sphere of business that masters the planning, and backup planning: operations management. It's more than ... Show More
32m 17s