Other Issues

ASC 606 and ASC 326 (CECL)

by

Analysis of how ASC 326 (CECL) relates to ASC 606 and its implications for businesses.

Implementing ASC 606 and ASC 326 (CECL) requires careful planning and important considerations.

ASC 606 and ASC 842 (Leases)

by

ASC 842 practical expedient and leaseback terms are just some of the ways the standard interacts with ASC 606.

ASC 606 and the 2020 AICPA Conference

by and

In the recent 2020 AICPA conference, revenue recognition was a hot topic, especially relating to principal-agent guidance and identification of performance obligations.

Comment Letter to Proposed Amendments

by

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

The RevenueHub FASB comment letter provides input on proposed narrow-scope improvements and practical expedients.

Completed Contracts at Transition

by and

For transitional purposes, the determination of whether contracts are completed or incomplete under the full or modified retrospective methods.

At transitions, the determination of whether contracts are completed or incomplete under the full or modified retrospective methods.

Contract vs. Portfolio Method in ASC 606

by

Specific criteria must be met for the portfolio method to be used as the practical expedient under ASC 606.

Specific criteria must be met for the portfolio method to be used as the practical expedient under ASC 606.

Costs to Fulfill a Contract in ASC 606

by and

Analysis of ASC 606's treatment of contract fulfillment costs, including scope considerations, the capitalization criteria, amortization, and impairment.

COVID-19 Impact on Revenue Recognition

by and

COVID-19 impacts much of the revenue model. Learn which parts of your revenue policy and procedures may need to be adapted in response to the recent pandemic.

The novel coronavirus has impacted businesses in many ways, leadning to changes in revenue recognition.

Disclosures in ASC 606

by and

Description of ASC 606's disclosure requirements regarding contracts with customers, significant judgments involved, and contract cost related assets.

Disclosure requirements in the ASC 606 standard are designed to improve the information communicated in financial statements.

Incremental Costs of Obtaining a Contract

by and

Analysis of incremental costs under ASC 606, including identifying the incremental costs, the criteria for capitalization, and how to amortize these costs.

Accounting for sales commissions and other costs incremental costs of obtaining a contract must meet the revised rules of ASC 340.

Installation and Implementation Services in ASC 606

by

Analysis of the three factors for determining separate performance obligations and assessing the timing of revenue recognition for installation and implementation services

Issues related to accounting for installation and implementation services are particularly relevant in the software industry.

Licenses for Intellectual Property

by and

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

Loss Contracts

by and

Guidance for loss contracts is not included in ASC 606, but is instead included in ASC 605.

Guidance for loss contracts is not included in ASC 606, but is instead included in ASC 605.

Lost Revenue

by and

Adopting ASC 606 has caused some entities to never recognize certain deferred revenue. See how this lost revenue was disclosed under both adoption methods.

During ASC 606 adoption, some entities have never recognized certain deferred revenue.

Overview of FASB’s Revenue Recognition Implementation Q&As

by

Learn about the objectives and contents of the FASB’s newly released Revenue Recognition Implementation Q&As.

Question mark on isolated island

Presentation of Contract Assets and Contract Liabilities in ASC 606

by and

Analysis and examples of contract assets and liabilities under ASC 606, including balance sheet presentation and implementation effects

ASC 606 gives specific guidance on how businesses present their assets and liabilities in financial statements.

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.

PwC's revenue recognition survey provides guidance on using this interactive tool.

Revenue from Collaborative Arrangements in ASC 606

by

Review the basics of ASC 808, Collaborative Arrangements, and learn how ASC 606 applies when collaborators exchange consideration in an illustrative case study.

Collaborative arrangements involve exchanging consideration and may be accounted for under the guidelines in ASC 808 and/or ASC 606.

Sales- and Usage-Based Royalties in ASC 606

by and

Analysis and examples of ASC 606's sales- and usage-based royalty exception criteria and how to recognize revenue using the exception

SEC Comment Letters on ASC 606

by

Top 10 most frequent ASC 606 topics in SEC comment letter threads with representative comment letter excerpts.

SEC comment letters provide additional guidance for implementing ASC 606.

SEC Commentary on ASC 606 Revenue Recognition Disclosures

by and

Learn about which ASC 606 disclosures are getting the most SEC comments.

SEC Comment Letters address a variety of topics related to company disclosures and provide guidance for implementation of ASC 606.

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.

TRG discussions were made authoritative by the SEC.

Warranty Obligations in ASC 606

by and

Analysis and examples of the two types of warranties under ASC 606 and the three factors used to distinguish between these types.

Contract warranties may assure the customer of a purchased good or provide an additional service, and these must be accounted for separately under ASC 606.