Wiley Practitioner's Guide to GAAP 2022

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
• ASC 605-35, Construction-Type and Production-Type Contracts
  • Combining Contracts
  • Contract Losses

CONCEPTS, RULES, AND EXAMPLES

Subtopics

With the implementation of ASU 2014-09, Revenue Recognition, there is no revenue recognition guidance in ASC 605. The topic does provide guidance on 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, Regulated Operations—Revenue ...