Wiley GAAP 2020

38 ASC 606 REVENUE FROM CONTRACTS WITH CUSTOMERS

• Overview
  • What Is Revenue?
    • Revenue
    • Revenue versus Gains
  • Development of Revenue Guidance
  • The Revenue Recognition Project
    • The New Standard
    • Customer Loyalty Programs
  • Scope
    • Scope Exceptions
    • Contracts Partially in Scope
    • Sale or Transfer of Nonfinancial Assets
  • Effective Dates
  • Other Changes
  • Implementation Options
    • Full Retrospective Approach
    • Modified Retrospective Approach
  • Objective of the Standard
  • Core Principle and the Five Steps of the Revenue Recognition Model
    • Example: Application of the Core Principle through the Five Steps
• Step 1: Identify the Contract with the Customer
  • Overview
  • Assessing Whether Contracts Are within the Scope of ASC 606
    • Enforceable Rights and Obligations
    • The Five Contract Criteria
    • The Contract Has Approval and Commitment of the Parties
    • Example: Oral Contract
    • Example: Product Delivered, but No Written Contract Exists
    • Example: Contract Extension
    • Commitment to Perform
    • Termination Clauses and Wholly Unperformed Contracts
    • Example: Meeting the Termination Criteria
    • Rights of the Parties Are Identifiable
    • Payment Terms Are Identifiable
    • The Contract Has Commercial Substance
  • Collectibility Threshold
    • Assessing Collectibility
    • Example: Assessing Collectibility—Implied Price Concession
    • Example: Assessing Collectibility—Meeting the Collectibility Threshold
  • Contract Recognition
  • Arrangements Where Contract Criteria Are Not Met
    • Reassessment
  • The Portfolio Approach and Combining Contracts
    • A Practical Expedient ...