Step 4 : Allocate Revenue

Allocating Discounts

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Allocating variable and fixed discounts to the transaction price under ASC 606, includes significant changes from ASC 605 to ASC 606.

Allocating Variable Consideration in ASC 606

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Analysis and illustrative examples of the two criteria given in ASC 606 for allocating variable consideration to performance obligations.

Allocation of variable consideration in revenue recognition is important in all industries of business.

Case Study: Estimating Standalone Selling Prices

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An extended example of applying the adjusted market assessment, expected cost plus margin, and residual approaches in estimating standalone selling prices.

A home purchase involves many deliverables that could be considered separate parts that must be assessed to estimate a standalone selling price under the ASC 606 guidance.

Standalone Selling Prices in ASC 606

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The concept of standalone selling prices involves identifying the individual "price tags" for each of the performance obligations in a contract.

The concept of standalone selling prices involves identifying the individual "price tags" for each of the performance obligations in a contract.

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.