Wiley GAAP 2024

36ASC 605 REVENUE RECOGNITION

• Concepts, Rules, and Examples
  • Subtopics
  • Scope
• Definitions of Terms
• ASC 605-20, Revenue Recognition—Provision for Losses on Separately Priced Extended Warranty and Product Maintenance Contracts
  • Recognition of Loss
    • Separately Priced Extended Warranty and Product Maintenance Contracts
• ASC 605-35, Construction-Type and Production-Type Contracts
  • Combining Contracts
  • Contract Losses

CONCEPTS, RULES, AND EXAMPLES

Subtopics

With the implementation of ASC 606, there is no revenue recognition guidance in ASC 605. The Topic does provide guidance on certain losses. ASC 605, Revenue Recognition, contains two subtopics:

• ASC 605-20, Revenue Recognition—Provision for Losses on Separately-Priced Extended Warranty and Product Maintenance Contracts, which provides guidance on separately priced extended warranty and product maintenance contracts.
• ASC 605-35, Revenue Recognition—Provision for Losses on Construction-Type and Production-Type Contracts, which provides guidance on the accounting for a provision for losses on a contract for which a customer provides specifications for the production of facilities or the provision of related services.

  (ASC 605-10-05-02)

The following Industry Subtopics contain revenue guidance:

• ASC 905-605, Agriculture—Revenue Recognition
• ASC 944-605, Financial Services—Revenue Recognition
• ASC 954-605, Health Care Entities—Revenue Recognition
• ASC 958-605, Not-for-Profit Entities—Revenue Recognition
• ASC 980-605,