Step 2 : Performance Obligations

Variable Consideration vs. Optional Purchases

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Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.

Distinct Goods or Services: Case Studies

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Three extended examples demonstrating the analyses for determining if goods or services are (1) capable of being distinct and (2) separately identifiable.

Customer Options for Additional Goods or Services

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Analysis and examples of how ASC 606 treats future discounts given to customers in a current sale, including diversity in thought and comparison to ASC 605.

Distinct within the Context of the Contract

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Analysis and examples of the new criteria under ASC 606 for identifying separate performance obligations as "distinct within the context of the contract".

Identifying Promised Goods & Services

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Identify promised goods and services by analyzing customer perspective, immateriality, implicit promises, setup activities, and marketing incentives.

Principal/Agent Considerations (Gross vs Net)

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Description and examples of how ASC 606 determines principle vs agent considerations, including new criteria for determination and diversity in thought.

Series of Distinct Goods or Services

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Analysis and multiple examples of ASC 606's two requirements for treating multiple distinct goods or services as one performance obligation (a series).

Stand-Ready Obligations

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Analysis and common examples of how ASC 606 treats stand-ready obligations as potential performance obligations, including diversity in thought.