Case Study

Combining Desktop and Cloud Software: Hybrid Contracts

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

Software firms often must recognize revenue from complex hybrid contracts involving desktop and cloud software, which require unique considerations under ASC 606.

Comprehensive Biotech Contract Evaluation: Case Study

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Walk through the five-step model in this comprehensive evaluation of a biotech collaborative arrangement between BioTek and Farma to commercialize a drug compound.

Biotechnology contracts must be evaluated in microscopic detail with accounting standards in mind for the best chances of success.

Estimating Standalone Selling Prices: Case Study

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

This case study addresses the considerations a home automation would need to address 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

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

Toys R Us and Mattel Inc., which produce children's toys like those pictured, are the focus of this revenue collectibility case study.

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

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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.

Sales- and Usage-based royalties are common in licensing contract for IP and require unique considerations under ASC 606.

OEMs, Incentives, and Variable Consideration: Case Study

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OEM contracts often involve variable consideration, incentives, and other complexities that require specific considerations under ASC 606.

Price Concessions: Case Study

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This case study explains how to identify price concessions and recognize revenue for transactions that contain a price concession.

Identifying price concessions and recognizing revenue correctly for transactions involving price concessions involves important considerations under ASC 606.

Revenue Disaggregation Disclosures: Alphabet Case Study

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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.

Google parent company Alphabet's revenue disaggregation methods are analyzed in this case study.

Revenue Disaggregation Disclosures: Ford Case Study

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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.

Ford, an early adopter of ASC 606, disclosed its disaggregation of revenue in its financials and received SEC feedback.

Revenue Recognition Over Time for Products: Case Study

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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.

Recognizing revenue over time under ASC 606 has specified considerations when applied to products.

SmokeyMan LO: Virtual Goods Case Study

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Software and Postcontract Customer Support (PCS): Case Study

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

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

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

The ASC 606 five-step approach applies to software as a service (SaaS) firms with special considerations.

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

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

Teamwork between stakeholders and the TRG helps update ASC 606 effectively.

Transaction Price Allocation: Case Study

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A comprehensive example of how transaction price is allocated to performance obligations, including cases involving variable considerations and discounts.

ASC 606's transaction price allocation portion is applied in this case study to a farming equipment company example.

Volume-Based Tiered Pricing Structure: Case Study

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

FinTech contract often include cheaper rates for higher volumes and must be accounted for carefully under ASC 606.