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Area for Improvement |
Summary of Amendments |
Assessing the Collectibility Criterion in Paragraph 606-10-25-1(e) and Accounting for Contracts That Do Not Meet the Criteria for Step 1 (Applying Paragraph 606-10-25-7) One criterion in Step 1 of the new revenue model is that it is probable that an entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Some TRG members and other stakeholders narrowly interpreted the guidance related to collectibility in a manner that would result in more contracts than the Board intended not meeting the collectibility criterion. If a contract fails to meet the collectibility criterion at contract inception, an entity continues to assess the contract to determine whether that criterion is subsequently met. If the criterion is not subsequently met, an entity only recognizes consideration received as revenue when the criteria in paragraph 606-10-25-7 have been met. Some TRG members and other stakeholders expressed the view that it is unclear when the criteria in paragraph 606-10-25-7 would be met for certain arrangements |
The amendments in this Update clarify the objective of the collectibility criterion in Step 1. The objective of this assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services that will be transferred to the customer. The amendments in this Update also add a new criterion to paragraph 606-10-25-7 to clarify when revenue would be recognized for a contract that fails to meet the criteria in Step 1. That criterion allows an entity to recognize revenue in the amount of consideration received when the entity has transferred control of the goods or services, the entity has stopped transferring goods or services (if applicable) and has no obligation under the contract to transfer additional goods or services, and the consideration received from the customer is nonrefundable. |
Presentation of Sales Taxes and Other Similar Taxes Collected from Customers In Step 3 of the new revenue model, an entity determines the transaction price of the contract. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). To determine whether amounts are collected on behalf of third parties, an entity would need to identify and analyze taxes on a jurisdiction-byjurisdiction basis to determine which amounts should be reported gross and which should be reported net. TRG members indicated to the Board that compliance with that aspect of Topic 606 could be complex and costly for many entities because of the number of jurisdictions in which an entity would have to determine which party is primarily obligated for payment of the tax and because of the variation of, and changes in, tax laws among federal, state, and local jurisdictions. |
The amendments in this Update permit an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. |
Noncash Consideration In Step 3 of the new revenue model, an entity determines the transaction price of the contract. Some contracts include promises of consideration in a form other than cash (that is, noncash consideration). Topic 606 states that noncash consideration is measured at fair value. However, Topic 606 does not specify the measurement date for noncash consideration. Additionally, some stakeholders indicated that it is unclear how the constraint on variable consideration is applied in circumstances in which the fair value of noncash consideration varies both because of the form of the consideration and for reasons other than the form of consideration. |
The amendments in this Update specify that the measurement date for noncash consideration is contract inception. The amendments in this Update also clarify that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration. |
Contract Modifications at Transition Topic 606 includes two transition methods: retrospectively to each prior reporting period presented in accordance with Topic 606 and retrospectively with the cumulative effect of initially applying the guidance in Topic 606 at the date of initial application. In applying either method, an entity is required to evaluate contract modifications that occurred before the beginning of the earliest period presented in accordance with Topic 606. TRG members informed the Board that this analysis may be complex and costly in instances in which an entity has a significant volume of contract modifications or when the modifications have occurred over a long period of time. |
The amendments in this Update provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented in accordance with Topic 606 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. |
Completed Contracts at Transition The two transition methods for Topic 606 include practical expedients related to completed contracts. The transition guidance in Topic 606 explains that a completed contract is “a contract for which the entity has transferred all of the goods or services identified in accordance with revenue guidance that is in effect before the date of initial application.” TRG members informed the Board that it is unclear when a contract should be considered “completed” for purposes of applying the transition guidance. |
The amendments in this Update clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy generally accepted accounting principles (GAAP) before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments in this Update permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts. |
Technical Correction An entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is required to provide the accounting change disclosures in paragraphs 250-10-50-1 through 50-3 in the period of adoption. Paragraph 250-10-50-1(b)(2) requires an entity to disclose current-period financial information in the period of adoption under former GAAP. Stakeholders reported that this requirement would significantly increase transition costs because an entity would have to account for contracts with customers under former GAAP and Topic 606 for one additional year. |
The amendments in this Update clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. |
Paragraph |
Action |
Accounting Standards Update |
Date |
606-10-25-1 |
Amended |
2016-12 |
05/09/2016 |
606-10-25-3 |
Amended |
2016-12 |
05/09/2016 |
606-10-25-5 |
Amended |
2016-12 |
05/09/2016 |
606-10-25-7 |
Amended |
2016-12 |
05/09/2016 |
606-10-32-2A |
Added |
2016-12 |
05/09/2016 |
606-10-32-21 |
Amended |
2016-12 |
05/09/2016 |
606-10-32-23 |
Amended |
2016-12 |
05/09/2016 |
606-10-55-3 |
Amended |
2016-12 |
05/09/2016 |
606-10-55-3A through 55-3C |
Added |
2016-12 |
05/09/2016 |
606-10-55-94 through 55-98 |
Amended |
2016-12 |
05/09/2016 |
606-10-55-98A through 55-98L |
Added |
2016-12 |
05/09/2016 |
606-10-55-250 |
Amended |
2016-12 |
05/09/2016 |
606-10-65-1 |
Amended |
2016-12 |
05/09/2016 |
MAIN FEATURES |
OVERVIEW AND BACKGROUND |
N/A |
606-10-05-1 |
IN7 |
606-10-05-2 |
IN8 |
606-10-05-3 |
IN8 |
606-10-05-4 |
IN9 |
606-10-05-5 |
N/A |
606-10-05-6 |
OBJECTIVES |
|
1 |
606-10-10-1 |
> Meeting the Objective |
|
2 |
606-10-10-2 |
3 |
606-10-10-3 |
4 |
606-10-10-4 |
SCOPE AND SCOPE EXCEPTIONS |
|
> Entities |
|
N/A |
606-10-15-1 |
> Transactions |
|
5 |
606-10-15-2 |
6 |
606-10-15-3 |
7 |
606-10-15-4 |
8 |
606-10-15-5 |
RECOGNITION |
|
> Identifying the Contract |
|
9 |
606-10-25-1* |
10 |
606-10-25-2 |
11 |
606-10-25-3* |
12 |
606-10-25-4 |
13 |
606-10-25-5 |
14 |
606-10-25-6 |
15 |
606-10-25-7* |
16 |
606-10-25-8 |
> Combination of Contracts |
|
17 |
606-10-25-9 |
> Contract Modifications |
|
18 |
606-10-25-10 |
19 |
606-10-25-11 |
20 |
606-10-25-12 |
21 |
606-10-25-13 |
> Identifying Performance Obligations |
|
22 |
606-10-25-14 |
23 |
606-10-25-15 |
> > Promises in Contracts with Customers |
|
24 |
606-10-25-16* |
N/A |
606-10-25-16A |
N/A |
606-10-25-16B |
25 |
606-10-25-17* |
> > Distinct Goods or Services |
|
26 |
606-10-25-18 |
N/A |
606-10-25-18A |
N/A |
606-10-25-18B |
27 |
606-10-25-19 |
28 |
606-10-25-20 |
29 |
606-10-25-21 |
30 |
606-10-25-22 |
> Satisfaction of Performance Obligations |
|
31 |
606-10-25-23 |
32 |
606-10-25-24 |
33 |
606-10-25-25 |
34 |
606-10-25-26 |
> > Performance Obligations Satisfied Over Time |
|
35 |
606-10-25-27 |
36 |
606-10-25-28 |
37 |
606-10-25-29 |
> > Performance Obligations Satisfied at a Point in Time |
|
38 |
606-10-25-30 |
> > Measuring Progress toward Complete Satisfaction of a Performance Obligation |
|
39 |
606-10-25-31 |
40 |
606-10-25-32 |
> > > Methods for Measuring Progress |
|
41 |
606-10-25-33 |
42 |
606-10-25-34 |
43 |
606-10-25-35 |
> > > Reasonable Measures of Progress |
|
44 |
606-10-25-36 |
45 |
606-10-25-37 |
MEASUREMENT |
|
46 |
606-10-32-1 |
> Determining the Transaction Price |
|
47 |
606-10-32-2 |
N/A |
606-10-32-2A |
48 |
606-10-32-3 |
49 |
606-10-32-4 |
> > Variable Consideration |
|
50 |
606-10-32-5 |
51 |
606-10-32-6 |
52 |
606-10-32-7 |
53 |
606-10-32-8 |
54 |
606-10-32-9 |
> > > Refund Liabilities |
|
55 |
606-10-32-10 |
> > > Constraining Estimates of Variable Consideration |
|
56 |
606-10-32-11 |
57 |
606-10-32-12 |
58 |
606-10-32-13 |
> > > Reassessment of Variable Consideration |
|
59 |
606-10-32-14 |
> > The Existence of a Significant Financing Component in the Contract |
|
60 |
606-10-32-15 |
61 |
606-10-32-16 |
62 |
606-10-32-17 |
63 |
606-10-32-18 |
64 |
606-10-32-19 |
65 |
606-10-32-20 |
> > Noncash Consideration |
|
66 |
606-10-32-21* |
67 |
606-10-32-22 |
68 |
606-10-32-23* |
69 |
606-10-32-24 |
> > Consideration Payable to a Customer |
|
70 |
606-10-32-25 |
71 |
606-10-32-26 |
72 |
606-10-32-27 |
> Allocating the Transaction Price to Performance Obligations |
|
73 |
606-10-32-28 |
74 |
606-10-32-29 |
75 |
606-10-32-30 |
> > Allocation Based on Standalone Selling Prices |
|
76 |
606-10-32-31 |
77 |
606-10-32-32 |
78 |
606-10-32-33 |
79 |
606-10-32-34 |
80 |
606-10-32-35 |
> > Allocation of a Discount |
|
81 |
606-10-32-36 |
82 |
606-10-32-37 |
83 |
606-10-32-38 |
> > Allocation of Variable Consideration |
|
84 |
606-10-32-39 |
85 |
606-10-32-40 |
86 |
606-10-32-41 |
> Changes in the Transaction Price |
|
87 |
606-10-32-42 |
88 |
606-10-32-43 |
89 |
606-10-32-44 |
90 |
606-10-32-45 |
Contract Costs |
|
> Overview and Background |
|
N/A |
340-40-05-1 |
N/A |
340-40-05-2 |
> Scope and Scope Exceptions |
|
N/A |
340-40-15-1 |
N/A |
340-40-15-2 |
N/A |
340-40-15-3 |
> > Incremental Costs of Obtaining a Contract |
|
91 |
340-40-25-1 |
92 |
340-40-25-2 |
93 |
340-40-25-3 |
94 |
340-40-25-4 |
> > Costs to Fulfill a Contract |
|
95 |
340-40-25-5 |
96 |
340-40-25-6 |
97 |
340-40-25-7 |
98 |
340-40-25-8 |
> > Amortization and Impairment |
|
99 |
340-40-35-1 |
100 |
340-40-35-2 |
101 |
340-40-35-3 |
102 |
340-40-35-4 |
103 |
340-40-35-5 |
104 |
340-40-35-6 |
OTHER PRESENTATION MATTERS |
|
105 |
606-10-45-1 |
106 |
606-10-45-2 |
107 |
606-10-45-3 |
108 |
606-10-45-4 |
109 |
606-10-45-5 |
DISCLOSURE |
|
110 |
606-10-50-1 |
111 |
606-10-50-2 |
112 |
606-10-50-3 |
> Contracts with Customers |
|
113 |
606-10-50-4 |
> > Disaggregation of Revenue |
|
114 |
606-10-50-5 |
115 |
606-10-50-6 |
N/A |
606-10-50-7 |
> > Contract Balances |
|
116 |
606-10-50-8 |
117 |
606-10-50-9 |
118 |
606-10-50-10 |
N/A |
606-10-50-11 |
> > Performance Obligations |
|
119 |
606-10-50-12 |
> > Transaction Price Allocated to the Remaining Performance Obligations |
|
120 |
606-10-50-13 |
121 |
606-10-50-14 |
122 |
606-10-50-15 |
N/A |
606-10-50-16 |
> Significant Judgments in the Application of the Guidance |
|
123 |
606-10-50-17 |
> > Determining the Timing of Satisfaction of Performance Obligations |
|
124 |
606-10-50-18 |
125 |
606-10-50-19 |
> > Determining the Transaction Price and the Amounts Allocated to Performance Obligations |
|
126 |
606-10-50-20 |
N/A |
606-10-50-21 |
> Assets Recognized from the Costs to Obtain or Fulfill a Contract with a Customer |
|
N/A |
340-40-50-1 |
127 |
340-40-50-2 |
128 |
340-40-50-3 |
N/A |
340-40-50-4 |
129 |
340-40-50-5 |
N/A |
340-40-50-6 |
> Practical Expedients |
|
129 |
606-10-50-22 |
N/A |
606-10-50-23 |
TRANSITION AND EFFECTIVE DATE |
|
Appendix C |
606-10-65-1* |
IMPLEMENTATION GUIDANCE |
|
B1 |
606-10-55-3* |
N/A |
606-10-55-3A |
N/A |
606-10-55-3B |
N/A |
606-10-55-3C |
> > Performance Obligations Satisfied Over Time |
|
B2 |
606-10-55-4 |
> > > Simultaneous Receipt and Consumption of the Benefits of the Entity’s Performance |
|
B3 |
606-10-55-5 |
B4 |
606-10-55-6 |
> > > Customer Controls the Asset As It Is Created or Enhanced |
|
B5 |
606-10-55-7 |
> > > Entity’s Performance Does Not Create an Asset with an Alternative Use |
|
B6 |
606-10-55-8 |
B7 |
606-10-55-9 |
B8 |
606-10-55-10 |
> > > Right to Payment for Performance Completed to Date |
|
B9 |
606-10-55-11 |
B10 |
606-10-55-12 |
B11 |
606-10-55-13 |
B12 |
606-10-55-14 |
B13 |
606-10-55-15 |
> > Methods for Measuring Progress toward Complete Satisfaction of a Performance Obligation |
|
B14 |
606-10-55-16 |
> > > Output Methods |
|
B15 |
606-10-55-17 |
B16 |
606-10-55-18 |
B17 |
606-10-55-19 |
> > > Input Methods |
|
B18 |
606-10-55-20 |
B19 |
606-10-55-21 |
> > Sale with a Right of Return |
|
B20 |
606-10-55-22 |
B21 |
606-10-55-23 |
B22 |
606-10-55-24 |
B23 |
606-10-55-25 |
B24 |
606-10-55-26 |
B25 |
606-10-55-27 |
B26 |
606-10-55-28 |
B27 |
606-10-55-29 |
> > Warranties |
|
B28 |
606-10-55-30 |
B29 |
606-10-55-31 |
B30 |
606-10-55-32 |
B31 |
606-10-55-33 |
B32 |
606-10-55-34 |
B33 |
606-10-55-35 |
> > Principal versus Agent Considerations |
|
B34 |
606-10-55-36 |
B34A |
606-10-55-36A |
B35 |
606-10-55-37 |
B35A |
606-10-55-37A |
B35B |
606-10-55-37B |
B36 |
606-10-55-38 |
B37 |
606-10-55-39 |
B37A |
606-10-55-39A |
B38 |
606-10-55-40 |
> > Customer Options for Additional Goods or Services |
|
B39 |
606-10-55-41 |
B40 |
606-10-55-42 |
B41 |
606-10-55-43 |
B42 |
606-10-55-44 |
B43 |
606-10-55-45 |
> > Customers’ Unexercised Rights |
|
B44 |
606-10-55-46 |
B45 |
606-10-55-47 |
B46 |
606-10-55-48 |
B47 |
606-10-55-49 |
> > Nonrefundable Upfront Fees (and Some Related Costs) |
|
B48 |
606-10-55-50 |
B49 |
606-10-55-51 |
B50 |
606-10-55-52 |
B51 |
606-10-55-53 |
> > Licensing |
|
B52 |
606-10-55-54* |
B53 |
606-10-55-55 |
B54 |
606-10-55-56 |
B55 |
606-10-55-57* |
B56 |
606-10-55-58* |
B60 |
606-10-55-58A* |
B61 |
606-10-55-58B* |
B61 |
606-10-55-58C* |
> > > Determining the Nature of the Entity’s Promise |
|
N/A |
606-10-55-59 |
B58 |
606-10-55-60* |
B59 |
N/A |
B59A |
N/A |
N/A |
606-10-55-62 |
N/A |
606-10-55-63 |
N/A |
606-10-55-63A |
B62 |
606-10-55-64* |
B62 |
606-10-55-64A* |
> > > Sales-Based or Usage-Based Royalties |
|
B63 |
606-10-55-65 |
B63A |
606-10-55-65A |
B63B |
606-10-55-65B |
> > Repurchase Agreements |
|
B64 |
606-10-55-66 |
B65 |
606-10-55-67 |
> > > A Forward or a Call Option |
|
B66 |
606-10-55-68 |
B67 |
606-10-55-69 |
B68 |
606-10-55-70 |
B69 |
606-10-55-71 |
> > > A Put Option |
|
B70 |
606-10-55-72 |
B71 |
606-10-55-73 |
B72 |
606-10-55-74 |
B73 |
606-10-55-75 |
B74 |
606-10-55-76 |
B75 |
606-10-55-77 |
B76 |
606-10-55-78 |
> > Consignment Arrangements |
|
B77 |
606-10-55-79 |
B78 |
606-10-55-80 |
> > Bill-and-Hold Arrangements |
|
B79 |
606-10-55-81 |
B80 |
606-10-55-82 |
B81 |
606-10-55-83 |
B82 |
606-10-55-84 |
> > Customer Acceptance |
|
B83 |
606-10-55-85 |
B84 |
606-10-55-86 |
B85 |
606-10-55-87 |
B86 |
606-10-55-88 |
> > Disclosure of Disaggregated Revenue |
|
B87 |
606-10-55-89 |
B88 |
606-10-55-90 |
B89 |
606-10-55-91 |
ILLUSTRATIONS |
|
IE1 |
606-10-55-92 |
N/A |
606-10-55-93 |
Identifying the Contract |
|
IE2 |
606-10-55-94* |
Example 1—Collectibility of the Consideration |
|
IE3 |
606-10-55-95 |
IE4 |
606-10-55-96* |
IE5 |
606-10-55-97* |
IE6 |
606-10-55-98* |
N/A |
606-10-55-98A |
N/A |
606-10-55-98B |
N/A |
606-10-55-98C |
N/A |
606-10-55-98D |
N/A |
606-10-55-98E |
N/A |
606-10-55-98F |
N/A |
606-10-55-98G |
N/A |
606-10-55-98H |
N/A |
606-10-55-98I |
N/A |
606-10-55-98J |
N/A |
606-10-55-98K |
N/A |
606-10-55-98L |
Example 2—Consideration Is Not the Stated Price—Implicit Price Concession |
|
IE7 |
606-10-55-99 |
IE8 |
606-10-55-100 |
IE9 |
606-10-55-101 |
Example 3—Implicit Price Concession |
|
IE10 |
606-10-55-102 |
IE11 |
606-10-55-103 |
IE12 |
606-10-55-104 |
IE13 |
606-10-55-105 |
Example 4—Reassessing the Criteria for Identifying a Contract |
|
IE14 |
606-10-55-106 |
IE15 |
606-10-55-107 |
IE16 |
606-10-55-108 |
IE17 |
606-10-55-109 |
Contract Modifications |
|
IE18 |
606-10-55-110 |
Example 5—Modification of a Contract for Goods |
|
IE19 |
606-10-55-111 |
IE20 |
606-10-55-112 |
IE21 |
606-10-55-113 |
IE22 |
606-10-55-114 |
IE23 |
606-10-55-115 |
IE24 |
606-10-55-116 |
Example 6—Change in the Transaction Price after a Contract Modification |
|
IE25 |
606-10-55-117 |
IE26 |
606-10-55-118 |
IE27 |
606-10-55-119 |
IE28 |
606-10-55-120 |
IE29 |
606-10-55-121 |
IE30 |
606-10-55-122 |
IE31 |
606-10-55-123 |
IE32 |
606-10-55-124 |
Example 7—Modification of a Services Contract |
|
IE33 |
606-10-55-125 |
IE34 |
606-10-55-126 |
IE35 |
606-10-55-127 |
IE36 |
606-10-55-128 |
Example 8—Modification Resulting in a Cumulative Catch-Up Adjustment to Revenue |
|
IE37 |
606-10-55-129 |
IE38 |
606-10-55-130 |
IE39 |
606-10-55-131 |
IE40 |
606-10-55-132 |
IE41 |
606-10-55-133 |
Example 9—Unapproved Change in Scope and Price |
|
IE42 |
606-10-55-134 |
IE43 |
606-10-55-135 |
Identifying Performance Obligations |
|
IE44 |
606-10-55-136* |
Example 10—Goods and Services Are Not Distinct |
|
IE45 |
606-10-55-137 |
IE46 |
606-10-55-138 |
IE47 |
606-10-55-139 |
IE48 |
606-10-55-140 |
IE48A |
606-10-55-140A |
IE48B |
606-10-55-140B |
IE48C |
606-10-55-140C |
N/A |
606-10-55-140D |
N/A |
606-10-55-140E |
N/A |
606-10-55-140F |
Example 11—Determining Whether Goods or Services Are Distinct |
|
IE49 |
606-10-55-141 |
IE50 |
606-10-55-142 |
IE51 |
606-10-55-143* |
IE52 |
606-10-55-144 |
IE53 |
606-10-55-145 |
IE54 |
606-10-55-146 |
IE55 |
606-10-55-147 |
IE56 |
606-10-55-148 |
IE57 |
606-10-55-149 |
IE58 |
606-10-55-150* |
IE58A |
606-10-55-150A |
IE58B |
606-10-55-150B |
IE58C |
606-10-55-150C |
IE58D |
606-10-55-150D |
IE58E |
606-10-55-150E |
IE58F |
606-10-55-150F |
IE58G |
606-10-55-150G |
IE58H |
606-10-55-150H |
IE58I |
606-10-55-150I |
IE58J |
606-10-55-150J |
IE58K |
606-10-55-150K |
Example 12—Explicit and Implicit Promises in a Contract |
|
IE59 |
606-10-55-151 |
IE60 |
606-10-55-152 |
IE61 |
606-10-55-153 |
IE61A |
606-10-55-153A |
IE62 |
606-10-55-154 |
IE63 |
606-10-55-155* |
IE65 |
606-10-55-157 |
IE65A |
606-10-55-157A |
Example 12A—Series of Distinct Goods or Services |
|
N/A |
606-10-55-157B |
N/A |
606-10-55-157C |
N/A |
606-10-55-157D |
N/A |
606-10-55-157E |
Performance Obligations Satisfied Over Time |
|
IE66 |
606-10-55-158 |
Example 13—Customer Simultaneously Receives and Consumes the Benefits |
|
IE67 |
606-10-55-159 |
IE68 |
606-10-55-160 |
Example 14—Assessing Alternative Use and Right to Payment |
|
IE69 |
606-10-55-161 |
IE70 |
606-10-55-162 |
IE71 |
606-10-55-163 |
IE72 |
606-10-55-164 |
Example 15—Asset Has No Alternative Use to the Entity |
|
IE73 |
606-10-55-165 |
IE74 |
606-10-55-166 |
IE75 |
606-10-55-167 |
IE76 |
606-10-55-168 |
Example 16—Enforceable Right to Payment for Performance Completed to Date |
|
IE77 |
606-10-55-169 |
IE78 |
606-10-55-170 |
IE79 |
606-10-55-171 |
IE80 |
606-10-55-172 |
Example 17—Assessing Whether a Performance Obligation Is Satisfied at a Point in Time or Over Time |
|
IE81 |
606-10-55-173 |
IE82 |
606-10-55-174 |
IE83 |
606-10-55-175 |
IE84 |
606-10-55-176 |
IE85 |
606-10-55-177 |
IE86 |
606-10-55-178 |
IE87 |
606-10-55-179 |
IE88 |
606-10-55-180 |
IE89 |
606-10-55-181 |
IE90 |
606-10-55-182 |
Measuring Progress toward Complete Satisfaction of a Performance Obligation |
|
IE91 |
606-10-55-183 |
Example 18—Measuring Progress When Making Goods or Services Available |
|
IE92 |
606-10-55-184 |
IE93 |
606-10-55-185 |
IE94 |
606-10-55-186 |
Example 19—Uninstalled Materials |
|
IE95 |
606-10-55-187 |
IE96 |
606-10-55-188 |
IE97 |
606-10-55-189 |
IE98 |
606-10-55-190 |
IE99 |
606-10-55-191 |
IE100 |
606-10-55-192 |
Variable Consideration |
|
IE101 |
606-10-55-193 |
Example 20—Penalty Gives Rise to Variable Consideration |
|
IE102 |
606-10-55-194 |
IE103 |
606-10-55-195 |
IE104 |
606-10-55-196 |
Example 21—Estimating Variable Consideration |
|
IE105 |
606-10-55-197 |
IE106 |
606-10-55-198 |
IE107 |
606-10-55-199 |
IE108 |
606-10-55-200 |
Constraining Estimates of Variable Consideration |
|
IE109 |
606-10-55-201 |
Example 22—Right of Return |
|
IE110 |
606-10-55-202 |
IE111 |
606-10-55-203 |
IE112 |
606-10-55-204 |
IE113 |
606-10-55-205 |
IE114 |
606-10-55-206 |
IE115 |
606-10-55-207 |
Example 23—Price Concessions |
|
IE116 |
606-10-55-208 |
IE117 |
606-10-55-209 |
IE118 |
606-10-55-210 |
IE119 |
606-10-55-211 |
IE120 |
606-10-55-212 |
IE121 |
606-10-55-213 |
IE122 |
606-10-55-214 |
IE123 |
606-10-55-215 |
Example 24—Volume Discount Incentive |
|
IE124 |
606-10-55-216 |
IE125 |
606-10-55-217 |
IE126 |
606-10-55-218 |
IE127 |
606-10-55-219 |
IE128 |
606-10-55-220 |
Example 25—Management Fees Subject to Constraint |
|
IE129 |
606-10-55-221 |
IE130 |
606-10-55-222 |
IE131 |
606-10-55-223 |
IE132 |
606-10-55-224 |
IE133 |
606-10-55-225 |
The Existence of a Significant Financing Component in the Contract |
|
IE134 |
606-10-55-226 |
Example 26—Significant Financing Component and Right of Return |
|
IE135 |
606-10-55-227 |
IE136 |
606-10-55-228 |
IE137 |
606-10-55-229 |
IE138 |
606-10-55-230 |
IE139 |
606-10-55-231 |
IE140 |
606-10-55-232 |
Example 27—Withheld Payments on a Long-Term Contract |
|
IE141 |
606-10-55-233 |
IE142 |
606-10-55-234 |
Example 28—Determining the Discount Rate |
|
IE143 |
606-10-55-235 |
IE144 |
606-10-55-236 |
IE145 |
606-10-55-237 |
IE146 |
606-10-55-238 |
IE147 |
606-10-55-239 |
Example 29—Advance Payment and Assessment of Discount Rate |
|
IE148 |
606-10-55-240 |
IE149 |
606-10-55-241 |
IE150 |
606-10-55-242 |
IE151 |
606-10-55-243 |
Example 30—Advance Payment |
|
IE152 |
606-10-55-244 |
IE153 |
606-10-55-245 |
IE154 |
606-10-55-246 |
Noncash Consideration |
|
IE155 |
606-10-55-247 |
Example 31—Entitlement to Noncash Consideration |
|
IE156 |
606-10-55-248 |
IE157 |
606-10-55-249 |
IE158 |
606-10-55-250* |
Consideration Payable to a Customer |
|
IE159 |
606-10-55-251 |
Example 32—Consideration Payable to a Customer |
|
IE160 |
606-10-55-252 |
IE161 |
606-10-55-253 |
IE162 |
606-10-55-254 |
Allocating the Transaction Price to Performance Obligations |
|
IE163 |
606-10-55-255 |
Example 33—Allocation Methodology |
|
IE164 |
606-10-55-256 |
IE165 |
606-10-55-257 |
IE166 |
606-10-55-258 |
Example 34—Allocating a Discount |
|
IE167 |
606-10-55-259 |
IE168 |
606-10-55-260 |
IE169 |
606-10-55-261 |
IE170 |
606-10-55-262 |
IE171 |
606-10-55-263 |
IE172 |
606-10-55-264 |
IE173 |
606-10-55-265 |
IE174 |
606-10-55-266 |
IE175 |
606-10-55-267 |
IE176 |
606-10-55-268 |
IE177 |
606-10-55-269 |
Example 35—Allocation of Variable Consideration |
|
IE178 |
606-10-55-270 |
IE179 |
606-10-55-271 |
IE180 |
606-10-55-272 |
IE181 |
606-10-55-273 |
IE182 |
606-10-55-274 |
IE183 |
606-10-55-275 |
IE184 |
606-10-55-276 |
IE185 |
606-10-55-277 |
IE186 |
606-10-55-278 |
IE187 |
606-10-55-279 |
Contract Costs |
|
IE188 |
340-40-55-1 |
Example 36—Incremental Costs of Obtaining a Contract |
|
IE189 |
340-40-55-2 |
IE190 |
340-40-55-3 |
IE191 |
340-40-55-4 |
Example 37—Costs That Give Rise to an Asset |
|
IE192 |
340-40-55-5 |
IE193 |
340-40-55-6 |
IE194 |
340-40-55-7 |
IE195 |
340-40-55-8 |
IE196 |
340-40-55-9 |
Presentation |
|
IE197 |
606-10-55-283 |
Example 38—Contract Liability and Receivable |
|
IE198 |
606-10-55-284 |
IE199 |
606-10-55-285 |
IE200 |
606-10-55-286 |
Example 39—Contract Asset Recognized for the Entity’s Performance |
|
IE201 |
606-10-55-287 |
IE202 |
606-10-55-288 |
IE203 |
606-10-55-289 |
IE204 |
606-10-55-290 |
Example 40—Receivable Recognized for the Entity’s Performance |
|
IE205 |
606-10-55-291 |
IE206 |
606-10-55-292 |
IE207 |
606-10-55-293 |
IE208 |
606-10-55-294 |
Disclosure |
|
IE209 |
606-10-55-295 |
Example 41—Disaggregation of Revenue—Quantitative Disclosure |
|
IE210 |
606-10-55-296 |
IE211 |
606-10-55-297 |
Example 42—Disclosure of the Transaction Price Allocated to the Remaining Performance Obligations |
|
IE212 |
606-10-55-298 |
IE213 |
606-10-55-299 |
IE214 |
606-10-55-300 |
IE215 |
606-10-55-301 |
IE216 |
606-10-55-302 |
IE217 |
606-10-55-303 |
IE218 |
606-10-55-304 |
IE219 |
606-10-55-305 |
Example 43—Disclosure of the Transaction Price Allocated to the Remaining Performance Obligations—Qualitative Disclosure |
|
IE220 |
606-10-55-306 |
IE221 |
606-10-55-307 |
Warranties |
|
IE222 |
606-10-55-308 |
Example 44—Warranties |
|
IE223 |
606-10-55-309* |
IE224 |
606-10-55-310 |
IE225 |
606-10-55-311 |
IE226 |
606-10-55-312 |
IE227 |
606-10-55-313 |
IE228 |
606-10-55-314 |
IE229 |
606-10-55-315 |
Principal versus Agent Considerations |
|
IE230 |
606-10-55-316 |
Example 45—Arranging for the Provision of Goods or Services (Entity Is an Agent) |
|
IE231 |
606-10-55-317 |
IE232 |
606-10-55-318 |
IE232A |
606-10-55-318A |
IE232B |
606-10-55-318B |
IE232C |
606-10-55-318C |
IE233 |
606-10-55-319 |
Example 46—Promise to Provide Goods or Services (Entity Is a Principal) |
|
IE234 |
606-10-55-320 |
IE235 |
606-10-55-321 |
IE236 |
606-10-55-322 |
IE237 |
606-10-55-323 |
IE237A |
606-10-55-323A |
IE237B |
606-10-55-323B |
IE238 |
606-10-55-324 |
Example 46A—Promise to Provide Goods or Services (Entity Is a Principal) |
|
IE238A |
606-10-55-324A |
IE238B |
606-10-55-324B |
IE238C |
606-10-55-324C |
IE238D |
606-10-55-324D |
IE238E |
606-10-55-324E |
IE238F |
606-10-55-324F |
IE238G |
606-10-55-324G |
Example 47—Promise to Provide Goods or Services (Entity Is a Principal) |
|
IE239 |
606-10-55-325 |
IE240 |
606-10-55-326 |
IE241 |
606-10-55-327 |
IE242 |
606-10-55-328 |
IE242A |
606-10-55-328A |
IE242B |
606-10-55-328B |
IE242C |
606-10-55-328C |
IE243 |
606-10-55-329 |
Example 48—–Arranging for the Provision of Goods or Services (Entity Is an Agent) |
|
IE244 |
606-10-55-330 |
IE245 |
606-10-55-331 |
IE246 |
606-10-55-332 |
IE247 |
606-10-55-333 |
IE247A |
606-10-55-333A |
IE247B |
606-10-55-333B |
IE248 |
606-10-55-334 |
Example 48A—Entity Is a Principal and an Agent in the Same Contract |
|
IE248A |
606-10-55-334A |
IE248B |
606-10-55-334B |
IE248C |
606-10-55-334C |
IE248D |
606-10-55-334D |
IE248E |
606-10-55-334E |
IE248F |
606-10-55-334F |
Customer Options for Additional Goods or Services |
|
IE249 |
606-10-55-335 |
Example 49—Option That Provides the Customer with a Material Right (Discount Voucher) |
|
IE250 |
606-10-55-336 |
IE251 |
606-10-55-337 |
IE252 |
606-10-55-338 |
IE253 |
606-10-55-339 |
Example 50—Option That Does Not Provide the Customer with a Material Right (Additional Goods or Services) |
|
IE254 |
606-10-55-340 |
IE255 |
606-10-55-341 |
IE256 |
606-10-55-342 |
Example 51—Option That Provides the Customer with a Material Right (Renewal Option) |
|
IE257 |
606-10-55-343 |
IE258 |
606-10-55-344 |
IE259 |
606-10-55-345 |
IE260 |
606-10-55-346 |
IE261 |
606-10-55-347 |
IE262 |
606-10-55-348 |
IE263 |
606-10-55-349 |
IE264 |
606-10-55-350 |
IE265 |
606-10-55-351 |
IE266 |
606-10-55-352 |
Example 52—Customer Loyalty Program |
|
IE267 |
606-10-55-353 |
IE268 |
606-10-55-354 |
IE269 |
606-10-55-355 |
IE270 |
606-10-55-356 |
Nonrefundable Upfront Fees |
|
IE271 |
606-10-55-357 |
Example 53—Nonrefundable Upfront Fee |
|
IE272 |
606-10-55-358 |
IE273 |
606-10-55-359 |
IE274 |
606-10-55-360 |
Licensing |
|
IE275 |
606-10-55-361* |
Example 54—Right to Use Intellectual Property |
|
IE276 |
606-10-55-362 |
IE277 |
606-10-55-363* |
N/A |
606-10-55-363A |
N/A |
606-10-55-363B |
Example 55—License of Intellectual Property |
|
IE278 |
606-10-55-364 |
IE279 |
606-10-55-365 |
IE279A |
606-10-55-365A |
IE280 |
606-10-55-366* |
Example 56—Identifying a Distinct License |
|
IE281 |
606-10-55-367* |
IE282 |
606-10-55-368* |
IE283 |
606-10-55-369 |
IE284 |
606-10-55-370* |
IE285 |
606-10-55-371 |
IE286 |
606-10-55-372 |
IE286A |
606-10-55-372A |
IE287 |
606-10-55-373* |
IE288 |
606-10-55-374* |
Example 57—Franchise Rights |
|
IE289 |
606-10-55-375* |
IE290 |
606-10-55-376* |
IE291 |
606-10-55-377 |
IE292 |
606-10-55-378* |
IE293 |
606-10-55-379* |
IE294 |
606-10-55-380* |
IE295 |
606-10-55-381* |
IE296 |
606-10-55-382* |
Example 58—Access to Intellectual Property |
|
IE297 |
606-10-55-383* |
IE298 |
606-10-55-384 |
IE299 |
606-10-55-385* |
IE300 |
606-10-55-386* |
IE301 |
606-10-55-387* |
IE302 |
606-10-55-388* |
Example 59—Right to Use Intellectual Property |
|
IE303 |
606-10-55-389 |
IE304 |
606-10-55-390 |
IE305 |
606-10-55-391* |
IE306 |
606-10-55-392* |
N/A |
606-10-55-392A |
N/A |
606-10-55-392B |
N/A |
606-10-55-392C |
N/A |
606-10-55-392D |
Example 60— Sales-Based Royalty Promised in Exchange for a License of Intellectual Property and Other Goods or Services |
|
IE307 |
606-10-55-393 |
IE308 |
606-10-55-394 |
Example 61—Access to Intellectual Property |
|
IE309 |
606-10-55-395 |
IE310 |
606-10-55-396* |
IE311 |
606-10-55-397* |
IE312 |
606-10-55-398* |
IE313 |
606-10-55-399* |
Example 61A—Right to Use Intellectual Property |
|
N/A |
606-10-55-399A |
N/A |
606-10-55-399B |
N/A |
606-10-55-399C |
N/A |
606-10-55-399D |
N/A |
606-10-55-399E |
N/A |
606-10-55-399F |
N/A |
606-10-55-399G |
N/A |
606-10-55-399H |
N/A |
606-10-55-399I |
N/A |
606-10-55-399J |
Example 61B—Distinguishing Multiple Licenses from Attributes of a Single License |
|
N/A |
606-10-55-399K |
N/A |
606-10-55-399L |
N/A |
606-10-55-399M |
N/A |
606-10-55-399N |
N/A |
606-10-55-399O |
Repurchase Agreements |
|
IE314 |
606-10-55-400 |
Example 62—Repurchase Agreements |
|
IE315 |
606-10-55-401 |
IE316 |
606-10-55-402 |
IE317 |
606-10-55-403 |
IE318 |
606-10-55-404 |
IE319 |
606-10-55-405 |
IE320 |
606-10-55-406 |
IE321 |
606-10-55-407 |
Bill-and-Hold Arrangements |
|
IE322 |
606-10-55-408 |
Example 63—Bill-and-Hold Arrangement |
|
IE323 |
606-10-55-409 |
IE324 |
606-10-55-410 |
IE325 |
606-10-55-411 |
IE326 |
606-10-55-412 |
IE327 |
606-10-55-413 |
Copyright #year# by Financial Accounting Foundation, Norwalk, Connecticut.
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