Case Study

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.

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...

Case Study: Volume-Based Tiered Pricing Structure

by

In many FinTech contracts, services get cheaper with higher volume. This article shows the proper accounting for such a contract under ASC 606.

Case Study: The Crucial Role of Stakeholders and the TRG in Updating ASC 606

by and

Explore the process of continued improvement to ASC 606 as stakeholders raise concerns, questions, and implementation issues to the TRG.

Case Study: Software-as-a-Service (SaaS)

by and

A comprehensive analysis of the five-step process of ASC 606 applied to a common Software-as-a-Service fact pattern.

Case Study: Software and Postcontract Customer Support (PCS)

by

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

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.