Step 2 : Performance Obligations

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.

Revenue must be recognized following specific considerations under ASC 606 in transactions involving customer options for additional goods or services.

Distinct Goods or Services in ASC 606

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Analysis of guidance and criteria under ASC 606 for distinct goods or services, along with case studies and examples.

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.

Identifying the promised goods and services in a contract is the first part of Step 2 of the five-step process in the ASC 606 revenue recognition standard.

Principal/Agent Considerations (Gross vs Net) in ASC 606

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Analysis and examples of the criteria for determining principal vs. agent (gross vs. net) presentation under ASC 606

App developers have a business model that makes determining their status as a principal or an agent important to determine for revenue recognition.

Series of Distinct Goods or Services in ASC 606

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Analysis and examples of when to treat multiple distinct goods or services as one performance obligation (a series) under ASC 606

Many construction project contracts involve interrelated series of distinct goods or services that must be accounted for appropriately under ASC 606.

Stand-Ready Obligations

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Analysis and examples of the different types of Stand-Ready Obligations under ASC 606.

Transportation services are involved in stand-ready obligations where organizations must be ready to provide goods specified in a contract.

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.