Both public and privately held companies should be ASC 606 compliant now based on the 2017 and 2018 deadlines. ASC 606—Revenue recognition Since the issuance of the new revenue recognition standard, Deloitte has been lighting the way for clients. An entity should not split a sales-based or usage-based royalty into a The final ASU is expected to give nonpublic entities the option of adopting the revenue recognition standard (FASB ASC Topic 606, Revenue From Contracts With Customers) on the current implementation date or deferring implementation for one year. Our analysis generally does not include any guidance related to IFRS for small and medium-sized entities or Private Company Council (PCC) alternatives that are embedded within US GAAP. EY: Technical Line: Engineering & Construction; PwC: In depth: Implementation in the engineering and construction industry; We will also provide references to other RevenueHub articles for more detailed explanations of related ASC 606 topics. Credit impairment under ASC 326 • ASU 2018-18, Collaborative Arrangement s (Topic 808), Clarifying the Interaction between Topic 808 and Topic 606 (for public entities) • To the Point, FASB clarifies the guidance on collaborative arrangements • Financial reporting developments, Revenue from contracts with customers (ASC 606) An employer may not consider delayed contributions in the plan’s funded status under ASC 715, even though the plan may consider them to be assets (i.e., contributions receivable) under ASC … The FASB proposed amendments to ASC 805 that would require companies to apply ASC 606 to recognize and measure contract assets and contract liabilities relating to contracts with customers they acquire in a business combination. What’s new from EY To the Point: FASB proposes guidance for revenue contracts acquired in a business combination. Topic 606 includes implementation guidance on when to recognize revenue for a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Accounting Standards Codification (ASC) 715-30, that requires a remeasurement of plan assets and obligations. In addition, some software arrangements give the customer the right to terminate the contract at the customer’s convenience. The amendments in this Update clarify the scope and applicability of this guidance as follows: 1. ASC 606 and IFRS 15. The ASC 606 revenue recognition standard requires entities to consider whether the fee is associated with the transfer of promised goods or services or an advance payment for future goods or services. To that point, the five step recognition process – as spelled out by the new guidance – takes on a specificity when applied to real estate … The FASB’s new model, codified in ASC 606, Revenue from contracts with customers, applies to a company's contracts with customers, except for contracts that are within the scope of other standards (e.g., leases, insurance, financial instruments). The Revenue from contracts with customers guide is a comprehensive resource for entities accounting for revenue transactions under ASC 606. ASC 606 is the new revenue recognition standard that affects all businesses that enter into contracts with customers to transfer goods or services – public, private and non-profit entities. Assessing collectibility under ASC 606: 5 things you need to know; Issues Accounting and reporting Auditing Governance insights Regulations Tax Strategy and operations Cybersecurity Human resources Mergers & acquisitions Risk management Sustainability Technology. Such is the case with real estate and ASC 606, where contract complexities make adoption of the new standards a bit more unique and singular than other industries. Close Start adding items to … Our understanding of the new standard combined with industry insight can help both public and private companies anticipate the sometimes challenging terrain ahead.