Wiley GAAP 2018, 16th Edition

39ASC 605 Revenue Recognition¹

1. Revenue Recognition—General Principles
   1. Technical Alert
      1. ASU 2014-09, Revenue from Contracts with Customers (Topic 606)
      2. ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting
      3. ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers
   2. Subtopics
      1. Revenue Recognition Concerns
   3. Issues in Revenue Recognition
      1. Barter Transactions
      2. Mischaracterization of Unusual Transactions as Components of Gross Revenue
      3. Mischaracterizing Transactions as Involving Arm's-Length, Third Parties, Thus Justifying Unwarranted Gain Recognition
      4. Selling Undervalued Assets to Generate Reportable Gains
2. ASC 605-10, Overall
3. Definitions of Terms
4. Concepts, Rules, and Examples
   1. The Installment Method
   2. The Cost Recovery Method
5. ASC 605-15, Products
6. Perspective and Issues
   1. Channel Stuffing
      1. Sales where Right of Return Exists
7. Definitions of Terms
8. Concepts, Rules, and Examples
   1. 1. Example of Sale with Right of Return
   2. Requirements for Revenue Recognition Met
   3. Requirements for Revenue Recognition not Met
      1. Future Returns cannot be Estimated
      2. Example: Future Product Returns—Returns cannot be Estimated
   4. Other Issues
      1. Accounting for Revenues Related to Vaccine Stockpiles
9. ASC 605-20, Service Revenues
10. Perspective and Issues
11. Definitions of Terms
12. Concepts, Rules, and Examples