Wiley GAAP 2019

39ASC 610 OTHER INCOME

PERSPECTIVE AND ISSUES

Effective Date

Topic ASC 610 was created by ASU 2014-09, Revenue from Contracts with Customers, to offer guidance for revenue generated by transactions outside the scope of ASC 606, that is, from transactions other than with customers in the ordinary course of business. ASC 610 is effective upon implementation of ASU 2014-09.

Technical Alert

In February 2017 the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.

Effective Date

The amendments to the nonfinancial asset guidance are effective at the same time an entity adopts the new revenue guidance. See the chapter on ASC 606 for the effective date details.

Early adoption is permitted for annual periods beginning after December 15, 2017, for public entities and after December 15, 2018, for all other entities.

Transition

The transition method does not have to be the same as that used for transition to ASC 606. Entities have the option of using either: The full retrospective approach (i.e., applied to prior periods currently being presented) or The modified retrospective approach.

Guidance

The ASU was issued to clarify that, unless other specific guidance applies, ASC 610-20 applies to the derecognition of:

• Nonfinancial assets and
• In substance nonfinancial assets.

It does not apply to the derecognition ...