Presentation and Disclosure of Retainage for Construction Contractors
A comprehensive guide on FASB's recommendations for retainage presentation and disclosure under ASC 606.
Recent SEC Comment Trends: ASC 606
Learn the most common ASC 606 comment letter issues and how to improve revenue disclosures based on 2024–2025 trends.
ASC 606 PIR: What It Is and Why It Matters
Explore the 2025 Post-Implementation Review of ASC 606, revealing key insights, challenges, and future implications for revenue recognition standards.
Definition of a Customer
Analysis of the updated definition of a customer in ASC 606's scope considerations, including examples of common transactions in a business context.
Consideration Payable to a Customer
Analysis of ASC 606's treatment of payments paid to customers, including the payment types and the timing of recognizing a reduction in revenue.
Customer Options for Additional Goods or Services
Analysis and examples of how ASC 606 treats future discounts given to customers in a current sale, including areas requiring significant professional judgment.
Standalone Selling Prices in ASC 606
A breakdown of the methods used to identify the standalone selling price.
Significant Financing Component in ASC 606
Analysis and examples of when a significant financing component exists in a contract and how to account for it under ASC 606.
Collectibility of Consideration
Analysis of the collectibility requirement of ASC 606, including accounting for contracts with initial and subsequent collectibility issues.
Allocating Variable Consideration in ASC 606
Analysis and illustrative examples of the two criteria given in ASC 606 for allocating variable consideration to performance obligations.
Bill-and-Hold Arrangements in ASC 606
ASC 606's four criteria for determining bill-and-hold arrangements and when storage service represents a separate performance obligation.
Price Concessions in ASC 606
Analysis and examples of price concessions based on either the customer's expectation or the company's intent.
Allocating Discounts
ASC 606 changed how entities allocate both variable and fixed discounts compared to legacy guidance under ASC 605
Accounting Input vs. Output Methods in ASC 606
Analysis of the input and output methods to measure progress towards completion of a performance obligation satisfied over time in ASC 606
Volume Discounts in ASC 606
Analysis and examples of estimating the transaction price of a contract with volume discounts under ASC 606.
Variable Consideration and the Constraint
Analysis and example of estimating variable consideration and applying the constraint under ASC 606.
Variable Consideration vs. Optional Purchases
Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.
Unexercised Rights (Breakage) in ASC 606
Analysis and examples of how customer unexercised rights (breakage) affect how the transaction price is allocated to performance obligations
Noncash Consideration
Determine the transaction price of a contract with noncash consideration under ASC 606, including when and how to measure the variable consideration caused by fluctuating fair value.
Overview of ASC 606
ASC 606 Revenue from Contracts with Customers was developed jointly by the FASB and IASB.
Identifying Promised Goods & Services
Identify promised goods and services by analyzing customer perspective, immateriality, implicit promises, fulfillment activities, and marketing incentives.
Estimating Standalone Selling Prices: Case Study
Home automation equipment includes many deliverables that may be assessed in different ways to estimate a standalone selling price under ASC 606.
Consignment Arrangements
Explanation and examples of the indicators that a consignment arrangement exists, including comparison to ASC 605.