In today’s mobile and interconnected world, many software companies offer cloud services in conjunction with software licenses, leading to increasingly complex contracts. Additionally, companies across many industries are starting to bill customers using a recurring subscription model. Many software companies…
The licensing of intellectual property (IP) is a common practice in the media and entertainment industry. For example, popular media companies such as Disney, Sony, and DreamWorks own thousands of valuable trademarks, logos, character images, etc. that can be licensed…
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,…
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.
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.
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