Most Recent

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.

Trending Topics

The Five-Step Method

by

Input vs. Output Methods

by

Revenue Recognition Over Time

by

Presentation of Contract Assets and Contract Liabilities

by

Standalone Selling Prices

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 »

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 collectability requirement of ASC 606, including accounting for contract's with initial and subsequent collectability 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.

Contract Modifications
Part II – Contract Modification Treatment

by and

If a contract modification is not considered a separate contract, entities use the Prospective Treatment method or Cumulative Catch-up Adjustment method.

STEP 2 : PERFORMANCE OBLIGATIONS

MORE ARTICLES »

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.

Distinct within the Context of the Contract

by

Analysis and examples of the new criteria under ASC 606 for identifying separate performance obligations as "distinct within the context of the contract".

Identifying Promised Goods & Services

by

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

STEP 3 : TRANSACTION PRICE

MORE ARTICLES »

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.

Magnitude of the Constraint on Revenue

by

Analysis and examples of ASC 606's requirement to constrain variable consideration based upon likelihood and magnitude, including diversity in thought.

Noncash Consideration

by

Determine the transaction price of a contract with noncash consideration under ASC 606, including when and how to measure variable fair value.

Nonrefundable Upfront Fees

by

Analysis of revenue recognition for nonrefundable upfront fees under ASC 606, including when fees relate to specific goods or services and material rights.

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

by

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.

Case Study: Transaction Price Allocation

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 »

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.

Bill-and-Hold Arrangements

by

ASC 606's four criteria for determining bill-and-hold arrangements and when these arrangements contains one or more performance obligations.

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.

Consignment Arrangements

by and

Explanation and examples of the indicators that a consignment arrangement exists, including comparison to ASC 605.

CASE STUDIES »

Combining Desktop and Cloud Software: Hybrid Contracts

by and

Software no longer has industry-specific guidance. See how to recognize revenue for Cloud-Software hybrid contracts under ASC 606. Extended example included.

Minimum Guarantee on Sales- and Usage-based Royalties Case Study

by and

Analyze a hypothetical licensing contract for IP with sales-based royalties and a minimum guarantee under Accounting Standards Codification (ASC) 606: Revenue from Contracts with Customers.

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,...

Case Study: OEMs, Incentives, and Variable Consideration

by and

Accounting Standards Codification (ASC) 606 places the responsibility on management to recognize revenue in a way that “depict[s] the transfer of promised goods and services to customers in an amount … [they] expect to be entitled,” per ASC 606-10-05-3. For...

OTHER ISSUES »

PwC Revenue Recognition Survey and SAB 74 Disclosure Guidance

by and

Key findings of PwC's Revenue Recognition Survey and guidance on using this interactive tool. Expectations and best practices for SAB 74 Disclosures.

Licenses for Intellectual Property

by

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

SEC Makes TRG Discussions Authoritative

by and

Statements made by Chief Accountant of the SEC imply a more authoritative role for the Revenue Recognition TRG; this may have unintended consequences.

Comment Letter to Proposed Amendments

by

FASB Comment Letter on proposed amendments to ASU Topic 606 regarding narrow-scope improvements and practical expedients.

INDUSTRY-SPECIFIC ISSUES »

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.

Common ASC 606 Issues: Power and Utility 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 power and utility entities face as they transition to ASC 606.

Common ASC 606 Issues: Industrial Products & Manufacturing Industry

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 manufacturing entities face as they transition to ASC 606.