The final step of the Accounting Standards Codification (ASC) 606 five-step model states that a company recognizes revenue when control of a promised good or service is transferred to the customer. We explain this guidance generally in a separate article,…
Software entities face unique issues as they apply ASC 606. Gain a deeper understanding of how to navigate these key issues.
Description of the three criteria in ASC 606 for determining whether revenue is recognized over time. Illustrative examples of each criterion are included.
An extended example applying ASC 606’s three criteria for recognizing revenue over time to goods and measuring revenue over time using inputs or outputs.
Explanation and examples of the indicators that a consignment arrangement exists, including comparison to ASC 605.
Criteria for revenue recognition at a point in time, including situations such as bill-and-hold, and consignments.
