United States

Updated guide to revenue recognition


We have issued an updated version of our guide to revenue recognition to further assist middle-market companies in applying the new revenue recognition model in Topic 606, “Revenue from Contracts with Customers,” of the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC). The guide has been updated for recent developments, including activities of the:

  • FASB, such as the issuance of new Accounting Standards Updates and non-authoritative guidance related to the implementation of ASC 606
  • AICPA, such as the issuance of its revenue recognition guide
  • SEC, such as speeches by SEC staff during the 2018 AICPA Conference on Current SEC and PCAOB Developments, which articulated their views on certain aspects of ASC 606

Our comprehensive guide includes in-depth discussion and numerous examples on all the important aspects of ASC 606, including its scope, five-step revenue recognition model, and presentation, disclosure, effective date and transition requirements. Our guide also includes in-depth discussion and examples on the related new guidance in: (a) ASC Subtopic 340-40, “Other Assets and Deferred Costs – Contracts with Customers,” and (b) ASC Subtopic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets.” In addition to discussing and illustrating the new guidance, we answer common questions that arise in practice and highlight significant differences between the new guidance and legacy generally accepted accounting principles to help in understanding how revenue recognition is changing.

For more information regarding ASC 606, also visit our Revenue Recognition Resource Center.