ASC 606 vs IFRS 15
This article outlines the differences between the U.S. and international accounting standards for revenue recognition.
Contract Modifications Part I – Separate Contracts
Analysis of the two options for treatment of contract modifications under ASC 606: (1) treated as a modification or (2) treated as a separate, standalone contract.
Understanding & Accounting for Cryptocurrency Payments
This article addresses the trajectory of the digital asset world and its relation to accounting principles.
Licenses for Intellectual Property
Key accounting issues that arise from licenses of intellectual property under ASC 606, including changes from ASC 605.
Variable Consideration and the Constraint
Analysis and example of estimating variable consideration and applying the constraint under ASC 606.
Revenue Recognition Over Time
Description of the three criteria in ASC 606 for determining whether revenue is recognized over time. Illustrative examples of each criterion are included.
Stand-Ready Obligations
Analysis and examples of the different types of Stand-Ready Obligations under ASC 606.
Customer Options for Additional Goods or Services
Analysis and examples of how ASC 606 treats future discounts given to customers in a current sale, including diversity in thought and comparison to ASC 605.
Noncash Consideration
Determine the transaction price of a contract with noncash consideration under ASC 606, including when and how to measure the variable consideration caused by fluctuating fair value.
Accounting Input vs. Output Methods in ASC 606
Analysis of the input and output methods to measure progress towards completion of a performance obligation satisfied over time in ASC 606
Significant Financing Component in ASC 606
Analysis and examples of when a significant financing component exists in a contract and how to account for it under ASC 606.
Consideration Payable to a Customer
Analysis of ASC 606's treatment of payments paid to customers, including the payment types and the timing of recognizing a reduction in revenue.
Incremental Costs of Obtaining a Contract
Analysis of incremental costs under ASC 606, including identifying the incremental costs, the criteria for capitalization, and how to amortize these costs.
Collectibility of Consideration
Analysis of the collectibility requirement of ASC 606, including accounting for contract's with initial and subsequent collectibility issues.
Rights of Return and Customer Acceptance in ASC 606
Depending on the type, a right of return may be a variable consideration under ASC 606.
Warranty Obligations in ASC 606
Analysis and examples of the two types of warranties under ASC 606 and the three factors used to distinguish between these types.
Allocating Variable Consideration in ASC 606
Analysis and illustrative examples of the two criteria given in ASC 606 for allocating variable consideration to performance obligations.
Unexercised Rights (Breakage) in ASC 606
Analysis and examples of how customers' unexercised rights (breakage) affect how the transaction price is allocated to performance obligations
Standalone Selling Prices in ASC 606
A breakdown of the methods used to identify standalone selling price.
Bill-and-Hold Arrangements in ASC 606
ASC 606's four criteria for determining bill-and-hold arrangements and when storage service represents a separate performance obligation.
Volume Discounts in ASC 606
Analysis and examples of estimating the transaction price of a contract with volume discounts under ASC 606.
Principal/Agent Considerations (Gross vs Net) in ASC 606
Analysis and examples of the criteria for determining principal vs. agent (gross vs. net) presentation under ASC 606
Determining the Transfer of Control
Criteria for revenue recognition at a point in time, including situations such as bill-and-hold, and consignments.