A PDF version of this publication is attached here: Revenue guide (PDF 3.4mb)
PwC is pleased to offer our accounting and financial reporting guide for Revenue from contracts with customers. This guide summarizes the applicable accounting literature, including relevant references to and excerpts from the FASB’s Accounting Standards Codification (the Codification). It also provides our insights and perspectives, interpretative and application guidance, illustrative examples, and discussion on emerging practice issues. The PwC guides should be read in conjunction with the applicable authoritative accounting literature.
References to US GAAP
Definitions, full paragraphs, and excerpts from the FASB’s Accounting Standards Codification are clearly designated, either within quotes in the regular text or enclosed within a shaded box. In some instances, guidance was cited with minor editorial modification to flow in the context of the PwC Guide. The remaining text is PwC’s original content.
References to other PwC guidance
This guide provides general and specific references to chapters in other PwC guides to assist users in finding other relevant information. References to other guides are indicated by the applicable guide abbreviation followed by the specific section number. The other PwC guides referred to in this guide, including their abbreviations, are:
  • Business combinations and noncontrolling interests (BCG)
  • Financial statement presentation (FSP)
  • IFRS and US GAAP: similarities and differences (SD)
  • Leases (LG)
  • Not-for-profit entities (NP)
  • Property, plant, equipment and other assets (PPE)
  • Transfers and servicing of financial assets (TS)

Summary of significant changes
Following is a summary of the noteworthy revisions to the guide since it was last updated. Additional updates may be made to future versions to keep pace with significant developments.
Revisions made in May 2023
Chapter 8, Practical application issues
  • RR 8.2 was updated to clarify the interaction between the repurchase right guidance and a sale with a right of return.
  • Question RR 8-1 was added to RR 8.2 to address the measurement of a refund liability when the customer is entitled to a partial refund of the purchase price upon return of a product.
  • ASU 2021-02 is effective for all entities. While the guidance in RR 8.4.4 was previously written to reflect adoption of ASU 2021-02, references to the ASU were removed.

Chapter 10, Principal versus agent considerations

Revisions made in October 2022
Chapter 2, Scope and identifying the contract
  • ASU 2018-18 is effective for all entities. While the guidance in RR 2.4.1 was previously written to reflect adoption of ASU 2018-18, references to the ASU were removed.
  • Example RR 2-7 was added to RR to illustrate the considerations in determining whether a master services agreement meets the contract criteria in the revenue standard.
  • RR 2.9.5 was added to include discussion of modifications that reduce the scope of a contract.

Chapter 4, Determining the transaction price
  • RR was added to include discussion of trailing commissions.
  • RR 4.6.7 was added to include discussion and example of payments to third parties on behalf of a customer.

Chapter 6, Recognizing revenue
  • Question RR 6-1 was added to RR to address whether to consider only the completed asset when determining whether an asset has alternative use.

Chapter 11, Contract costs
  • Additional examples of other guidance that might permit or require the accrual of losses on uncompleted contracts were added to RR 11.5.1.

This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.
The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and is reproduced with permission.
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