RevenueHub | Revenue Recognition: Simplified

The RevenueHub team provides plain-English articles outlining technical insights and other valuable information for applying the ASC 606 revenue recognition standard to your business.

Explore Overview Articles
- OR -
Contact Us With Questions

Most Recent

Revenue Recognition Over Time

by and

Description of the three criteria in ASC 606 for determining whether revenue is recognized over time. Illustrative examples of each criterion are included.

COVID-19 Impact on Revenue Recognition

by and

COVID-19 impacts much of the revenue model. Learn which parts of your revenue policy and procedures may need to be adapted in response to the recent pandemic.

Trending Topics

Revenue Recognition Over Time

by and

Presentation of Contract Assets and Contract Liabilities in ASC 606

by and

The Five-Step Method

by

Input vs. Output Methods in ASC 606

by

Standalone Selling Prices in ASC 606

by

General Overview

MORE ARTICLES »

Implementing ASC 606

by

Get practical answers for the most common questions on what to expect when implementing ASC 606's standards in your business.

Overview of ASC 606

by and

Collaboration between FASB and IASB resulted in ASC 606. Filers have choice between Full Retrospective and Modified Retrospective Adoption methods.

The Five-Step Method

by

Summary of each of the five steps of ASC 606 and key issues entities need to consider when completing each step.

Transition Dates and Methods

by

Stay up-to-date on an entity’s required ASC 606 transition date and its most beneficial transition method, which varies based on entity type and industry.

Step 1 : Contract

MORE ARTICLES »

Termination Clauses

by and

Termination clauses can impact the contract term, which has implications for all steps of the revenue model. Read about the most common issues that entities face related to termination clauses.

Combining Contracts

by and

Analysis and examples of the criteria for determining if contracts entered into with a customer at or near the same time must be combined for revenue recognition.

Collectibility of Consideration

by

Analysis of the collectibility requirement of ASC 606, including accounting for contract's with initial and subsequent collectibility issues.

Contract Modifications
Part I – Separate Contracts

by and

Analysis of changes in the price or scope of a contract and whether they qualify as modifications and should be treated as a separate, standalone contract.

Step 2 : Performance Obligations

MORE ARTICLES »

Principal/Agent Considerations (Gross vs Net) in ASC 606

by and

Analysis and examples of the criteria for determining principal vs. agent (gross vs. net) presentation under ASC 606

Variable Consideration vs. Optional Purchases

by

Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.

Distinct Goods or Services: Case Studies

by and

Three extended examples demonstrating the analyses for determining if goods or services are (1) capable of being distinct and (2) separately identifiable.

Customer Options for Additional Goods or Services

by

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.

Step 3 : Transaction Price

MORE ARTICLES »

Variable Consideration and the Constraint

by and

Analysis and example of estimating variable consideration and applying the constraint under ASC 606.

Payments to Customers for Cooperative Digital Marketing

by and

Many digital marketing arrangements involve consideration payable to a customer. Learn whether such payments should be a reduction of revenue or a marketing expense.

Variable Consideration vs. Optional Purchases

by

Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.

Consideration Payable to a Customer

by

Analysis of ASC 606's treatment of payments paid to customers, including the payment types and the timing of recognizing a reduction in revenue.

Step 4 : Allocate Revenue

MORE ARTICLES »

Allocating Discounts

by

Allocating variable and fixed discounts to the transaction price under ASC 606, includes significant changes from ASC 605 to ASC 606.

Allocating Variable Consideration in ASC 606

by and

Analysis and illustrative examples of the two criteria given in ASC 606 for allocating variable consideration to performance obligations.

Case Study: Estimating Standalone Selling Prices

by

An extended example of applying the adjusted market assessment, expected cost plus margin, and residual approaches in estimating standalone selling prices.

Transaction Price Allocation: Case Study

by

A comprehensive example of how transaction price is allocated to performance obligations, including cases involving variable considerations and discounts.

Step 5 : Recognize Revenue

MORE ARTICLES »

Revenue Recognition Over Time

by and

Description of the three criteria in ASC 606 for determining whether revenue is recognized over time. Illustrative examples of each criterion are included.

Bill-and-Hold Arrangements in ASC 606

by and

ASC 606's four criteria for determining bill-and-hold arrangements and when storage service represents a separate performance obligation.

Measuring Progress with Multiple Goods or Services in a Single Performance Obligation

by

Analysis of step five of ASC 606’s model when a single performance obligation has multiple non-distinct promises, including restrictions, principles, and examples.

Case Study: Revenue Recognition Over Time for Products

by

An extended example applying ASC 606's three criteria for recognizing revenue over time to goods and measuring revenue over time using inputs or outputs.

CASE STUDIES »
Biotechnology contracts must be evaluated in microscopic detail with accounting standards in mind for the best chances of success.

Comprehensive Biotech Contract Evaluation: Case Study

by and

Walk through the five-step model in this comprehensive evaluation of a biotech collaborative arrangement between BioTek and Farma to commercialize a drug compound.

Revenue Disaggregation Disclosures: Alphabet Case Study

by and

Take a look at how early adopter, Alphabet Inc., disclosed its disaggregation of revenue in its financials, and see what the SEC had to say about it.

Revenue Disaggregation Disclosures: Ford Case Study

by and

Take a look at how early adopter, Ford Motor Company, disclosed its disaggregation of revenue in its financials, and see what the SEC had to say about it.

Case Study: Price Concessions

by

This case study explains how to identify price concessions and recognize revenue for transactions that contain a price concession.

OTHER ISSUES »
The novel coronavirus has impacted businesses in many ways, leadning to changes in revenue recognition.

COVID-19 Impact on Revenue Recognition

by and

COVID-19 impacts much of the revenue model. Learn which parts of your revenue policy and procedures may need to be adapted in response to the recent pandemic.

SEC Commentary on ASC 606 Revenue Recognition Disclosures

by and

Learn about which ASC 606 disclosures are getting the most SEC comments.

Presentation of Contract Assets and Contract Liabilities in ASC 606

by and

Analysis and examples of contract assets and liabilities under ASC 606, including balance sheet presentation and implementation effects

SEC Comment Letters on ASC 606

by

Top 10 most frequent ASC 606 topics in SEC comment letter threads with representative comment letter excerpts.

INDUSTRY-SPECIFIC ISSUES »
Vehicles produced by Automotive Industry, which has specific considerations related to ASC 606 accounts standards.

Common ASC 606 Issues: Automotive Entities

by and

Implementing ASC 606 requires a substantial amount of time and expertise, with specific challenges rising in each industry. Gain a deeper understanding of the key issues that automotive entities face as they transition to ASC 606.

Common ASC 606 Issues: Life Sciences Entities

by and

Implementing ASC 606 requires a substantial amount of time and expertise, with specific challenges rising in each industry. Gain a deeper understanding of the key issues that life sciences entities face as they transition to ASC 606.

Common ASC 606 Issues: Educational Not-for-profit Entities

by

Implementing ASC 606 requires a substantial amount of time and expertise, with specific challenges rising in each industry. Gain a deeper understanding of the key issues that not-for-profit entities face as they transition to ASC 606.

Common ASC 606 Issues: Oil and Gas Entities

by

Implementing ASC 606 requires a substantial amount of time and expertise, with specific challenges rising in each industry. Gain a deeper understanding of the key issues that oil and gas entities face as they transition to ASC 606.