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

Noncash Consideration

by and

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.

ASC 606 and ASC 326 (CECL)

by

Analysis of how ASC 326 (CECL) relates to ASC 606 and its implications for businesses.

Trending Topics

Accounting Input vs. Output Methods in ASC 606

by and

Standalone Selling Prices in ASC 606

by and

Revenue Recognition Over Time

by and

Presentation of Contract Assets and Contract Liabilities in ASC 606

by and

The Five-Step Method

by

General Overview

MORE ARTICLES »
Implementing ASC 606 in any firm requires careful consideration and planning to be successful.

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.

Applying the ASC 606 revenue recognition standard is an important consideration for companies of all types and sizes.

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.

A step-by-step approach to ASC 606 implementation helps ensure success.

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 require special considerations under the ASC 606 revenue recgnition standard.

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 »

Collectibility of Consideration

by and

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

Identify the Contract

by and

The first step of ASC 606 is to identify the contract with a customer. ASC 606 outlines many criteria, including legal enforceability and collectability.

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.

Step 2 : Performance Obligations

MORE ARTICLES »

Stand-Ready Obligations

by and

Analysis and examples of the different types of Stand-Ready Obligations under ASC 606.

Identifying Promised Goods & Services

by and

Identify promised goods and services by analyzing customer perspective, immateriality, implicit promises, setup activities, and marketing incentives.

Distinct Goods or Services in ASC 606

by , and

Analysis of guidance and criteria under ASC 606 for distinct goods or services, along with case studies and examples.

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

Step 3 : Transaction Price

MORE ARTICLES »

Noncash Consideration

by and

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.

Price Concessions in ASC 606

by and

Analysis and examples of price concessions based on either the customer's expectation or the company's intent

Significant Financing Component in ASC 606

by and

Analysis and examples of when a significant financing component exists in a contract and how to account for it under ASC 606.

Variable Consideration and the Constraint

by and

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

Step 4 : Allocate Revenue

MORE ARTICLES »

Estimating Standalone Selling Prices: Case Study

by and

Home automation equipment contains many deliverables that may be assessed in different ways to estimate a standalone selling price under the ASC 606 guidance.

Standalone Selling Prices in ASC 606

by and

A breakdown of the methods used to identify standalone selling price.

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.

Allocating Discounts

by

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

Step 5 : Recognize Revenue

MORE ARTICLES »

Accounting Input vs. Output Methods in ASC 606

by and

Analysis of the input and output methods to measure progress towards completion of a performance obligation satisfied over time in ASC 606

Unexercised Rights (Breakage) in ASC 606

by and

Analysis and examples of how customers' unexercised rights (breakage) affect how the transaction price is allocated to performance obligations

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.

CASE STUDIES »

Software and Postcontract Customer Support (PCS): Case Study

by and

Software revenue recognition may change under ASC 606, especially when distinct elements of PCS are determined to be separate performance obligations.

Estimating Standalone Selling Prices: Case Study

by and

Home automation equipment contains many deliverables that may be assessed in different ways to estimate a standalone selling price under the ASC 606 guidance.

Mattel, Inc. and Toys R Us – Evaluating Collectibility when a Customer Experiences Financial Distress: Case Study

by

Learn how Mattel evaluated the collectibility of revenue throughout Toys R Us’ bankruptcy.

SmokeyMan LO: Virtual Goods Case Study

by , and

In today’s virtual gaming world, many games across multiple platforms allow players to access their virtual environment for free while in-game purchases of various virtual currencies and goods allow players to enhance gameplay. Popular freemium games such as Candy Crush,...

OTHER ISSUES »
Implementing ASC 606 and ASC 326 (CECL) requires careful planning and important considerations.

ASC 606 and ASC 326 (CECL)

by

Analysis of how ASC 326 (CECL) relates to ASC 606 and its implications for businesses.

Sales- and Usage-Based Royalties in ASC 606

by and

Analysis and examples of ASC 606's sales- and usage-based royalty exception criteria and how to recognize revenue using the exception

Licenses for Intellectual Property

by and

Description and examples of revenue recognition for licenses of intellectual property under ASC 606, including determining license nature and timing of recognition.

Warranty Obligations in ASC 606

by and

Analysis and examples of the two types of warranties under ASC 606 and the three factors used to distinguish between these types.

INDUSTRY-SPECIFIC ISSUES »
Healthcare industry firms have specific considerations under the ASC 606 Revenue Recognition standard.

Common ASC 606 Issues: Health Care Entities

by , and

Health care entities face unique issues as they apply ASC 606. Gain a deeper understanding of how to navigate these key issues.

Common ASC 606 Issues: Airline Entities

by and

Airlines face unique issues as they apply ASC 606. Gain a deeper understanding of how to navigate these key issues.

Common ASC 606 Issues: Media and Entertainment Entities

by and

Media and Entertainment companies face unique issues as they apply ASC 606. Gain a deeper understanding of how to navigate these key issues.

Common ASC 606 Issues: Asset Management

by and

Asset managers face unique issues as they apply ASC 606. Gain a deeper understanding of how to navigate these key issues.