Step 3 : Transaction Price
Consideration Payable to a Customer
Analysis of ASC 606's treatment of payments paid to customers, including the payment types and the timing of recognizing a reduction in revenue.
Determine the transaction price of a contract with noncash consideration under ASC 606, including when and how to measure the variable consideration caused by fluctuating fair value.
Nonrefundable Upfront Fees
Analysis of revenue recognition for nonrefundable upfront fees under ASC 606, including when the fees relate to specific performance obligations or material rights.
Payments to Customers for Cooperative Digital Marketing
Many digital marketing arrangements involve consideration payable to a customer. Learn whether such payments should be a reduction of revenue or a marketing expense.
Price Concessions in ASC 606
Analysis and examples of price concessions based on either the customer's expectation or the company's intent
Rights of Return and Customer Acceptance in ASC 606
Depending on the type, a right of return may be a variable consideration under ASC 606.
Significant Financing Component in ASC 606
Analysis and examples of when a significant financing component exists in a contract and how to account for it under ASC 606.
Variable Consideration and the Constraint
Analysis and example of estimating variable consideration and applying the constraint under ASC 606.
Variable Consideration vs. Optional Purchases
Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.
Volume Discounts in ASC 606
Analysis and examples of estimating the transaction price of a contract with volume discounts under ASC 606.