Must Watch-Revenue Recognition Simplified | Analyzing Income Statement | CFA L1 Live - Focused Batch

Описание: Revenue Recognition Simplified | Understanding Income Statements | CFA Level I – FSA

In this video, Anurag Sir simplifies the concept of revenue recognition — a foundational yet often confusing area in Financial Statement Analysis. Through practical explanations and real-world logic, you’ll understand how and when revenue is recognized, why timing matters, and how it directly impacts the income statement under CFA Level I.

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Timestamps:

0:00 – Introduction to Revenue Recognition
1:17 – Why accounting frauds start with Sales (Enron, Satyam examples)
2:50 – Problems with old accounting standards
3:04 – How IASB & FASB came together → IFRS 15 & ASC 606
5:30 – General principle: When should revenue be booked?
7:42 – Shift from Risk & Reward to Control framework
8:23 – The 5-Step Revenue Recognition Model (Overview)
11:23 – Step 1: Identify the Contract with Customer
17:03 – Commercial Substance & Probability of Collection
19:37 – IFRS vs US GAAP: "More likely than not" vs "Likely to occur"
24:11 – Step 2: Identify Performance Obligations
25:00 – Example: Software + Installation + Training + Support
30:05 – Test for separate vs. bundled Performance Obligations
32:34 – Step 3: Determine the Transaction Price
33:19 – Step 4: Allocate Transaction Price using Standalone Selling Price
39:05 – Step 5: Recognize Revenue when Control is Transferred
39:29 – Real Estate Example: How IFRS 15 was a game changer
44:32 – Recap of all 5 Steps
47:00 – Fraud and Revenue Manipulation — what analysts should watch for



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