Aubrey Schwendiman and Jeff Wilks
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.
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.
This case study explains how to identify price concessions and recognize revenue for transactions that contain a price concession.
Cole Moffat and Jeff Wilks
Software no longer has industry-specific guidance. See how to recognize revenue for Cloud-Software hybrid contracts under ASC 606. Extended example included.
Andrew Bellomy and Jeff Wilks
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.
Andrew Bellomy and Cassy Budd
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,...
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...
In many FinTech contracts, services get cheaper with higher volume. This article shows the proper accounting for such a contract under ASC 606.
Explore the process of continued improvement to ASC 606 as stakeholders raise concerns, questions, and implementation issues to the TRG.
Christian Jones and Andrew Bellomy
A comprehensive analysis of the five-step process of ASC 606 applied to a common Software-as-a-Service fact pattern.
Software revenue recognition may change under ASC 606, especially when distinct elements of PCS are determined to be separate performance obligations.
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.
An extended example of applying the adjusted market assessment, expected cost plus margin, and residual approaches in estimating standalone selling prices.
A comprehensive example of how transaction price is allocated to performance obligations, including cases involving variable considerations and discounts.