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.

Discounts are common practice in many industries; accounting for them under ASC 606 requires specific considerations.

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.

Estimating Standalone Selling Prices: Case Study

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Home automation equipment contains many deliverables that may be assessed in different ways to estimate a standalone selling price under the ASC 606 guidance.

This case study addresses the considerations a home automation would need to address to estimate a standalone selling price under the ASC 606 guidance.

Standalone Selling Prices in ASC 606

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A breakdown of the methods used to identify standalone selling price.

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.