ASC

ASC 605-10

Overall

605 Revenue Recognition

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In brief

IntroductoryRevenueRecognitionIndustry-specificTransition and effective dates

ASC 605-10 is the residual "Overall" subtopic of the legacy Revenue Recognition Topic; after ASU 2014-09 substantially all of its recognition guidance was superseded and replaced by Topic 606. What remains is a navigational shell: it states that no revenue recognition guidance is located in Topic 605, points to industry Subtopics that still govern revenue for contracts not with customers within Topic 606's scope, and directs users to the Subtopics containing guidance on provisions for losses on onerous contracts.

Key points (5)
  • Per 605-10-05-3, there is no revenue recognition guidance in Topic 605; revenue from contracts with customers is accounted for under Topic 606.
  • Revenue for contracts not with customers within Topic 606's scope remains in industry Subtopics listed in 605-10-05-3: 905-605 (agricultural cooperatives), 944-605 (insurance contracts), 954-605 (contributions from related fundraising entities and charity care), 958-605 (contributions), and 980-605 (alternative revenue programs).
  • Provision-for-loss (onerous contract) guidance survives in 605-20 (separately priced extended warranty and product maintenance contracts) and 605-35 (construction-type and production-type contracts), per 605-10-05-2 and 605-10-05-4.
  • 605-10-05-4 also cross-references loss provision guidance in 985-605-25-7 (software), 944-605-35-7 (insurance), 912-20-45-5 (federal government contractors), 954-440-35-1 through 35-3 (continuing care retirement communities), 954-450-30-3 through 30-4 (prepaid health care services), and 980-350-35-3 (long-term power sales contracts).
  • The scope of this Subtopic applies to all entities (605-10-15-1), but its substantive scope paragraphs 605-10-15-2 and 15-3 and all of Section 25 were superseded by ASU 2014-09.

For students. Do not cite ASC 605-10 for revenue recognition rules — it is now an empty signpost pointing to Topic 606, to industry Subtopics for non-customer contracts, and to the surviving loss-provision guidance. The common mistake is assuming all of Topic 605 vanished; the provision-for-losses Subtopics 605-20 and 605-35 are still live GAAP.

superseded revenue guidanceonerous contractprovision for lossescontracts not with customersindustry-specific revenue guidanceresidual subtopicscope cross-references

Machine-generated study aid for ASC 605-10. Check the source paragraphs below.

605-10-00Status

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605-10-05Overview and Background

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605-10-05-2
The following two Subtopics within this Topic provide guidance on provision for losses:
  1. a
    605-20, Revenue Recognition—Provision for Losses on Separately Priced Extended Warranty and Product Maintenance Contracts
  2. b
    605-35, Revenue Recognition—Provision for Losses on Construction-Type and Production-Type Contracts.
605-10-05-3
There is no revenue recognition guidance located in this Topic. There is revenue guidance in the following industry Subtopics for contracts that are not with customers within the scope of Topic 606 on revenue from contracts with customers. Revenue guidance is included in the following industry-specific Subtopics:
  1. a
    905-605, Agriculture—Revenue Recognition, for guidance on cooperatives
  2. b
    944-605, Financial Services—Insurance—Revenue Recognition, for guidance on insurance contracts
  3. c
    954-605, Health Care Entities—Revenue Recognition, for guidance on contributions from related fundraising entities and charity care
  4. d
    958-605, Not-for-Profit Entities—Revenue Recognition, for guidance on contributions
  5. e
    980-605, Regulated Operations—Revenue Recognition, for guidance on alternative revenue programs.
605-10-05-4
This Topic also provides guidance and references for the recognition and measurement of a provision for losses for certain arrangements (that is, an onerous contract). The guidance on recognizing a provision for loss is located in the following Subtopics:
  1. a
    605-20, Revenue Recognition—Provision for Losses on Separately Priced Extended Warranty and Product Maintenance Contracts
  2. b
    605-35, Revenue Recognition—Provision for Losses on Construction-Type and Production-Type Contracts
  3. c
    985-605, Software—Revenue Recognition, specifically paragraph 985-605-25-7
  4. d
    944-605, Financial Services—Insurance—Revenue Recognition, specifically paragraph 944-605-35-7
  5. e
    912-20, Contractors—Federal Government—Contract Costs, specifically paragraph 912-20-45-5
  6. f
    954-440, Health Care Entities—Commitments, specifically on continuing care retirement communities in paragraphs
    954-440-35-1 through 35-3
  7. g
    954-450, Health Care Entities—Contingencies, specifically on prepaid health care services in paragraphs
    954-450-30-3 through 30-4
  8. h
    980-350, Regulated Operations—Intangibles—Goodwill and Other, specifically on long-term power sales contracts in paragraph 980-350-35-3.

605-10-15Scope and Scope Exceptions

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Entities

605-10-15-1
The guidance in this Subtopic applies to all entities.

605-10-25Recognition

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605-10-60Relationships

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605-10-S00StatusSEC

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605-10-S00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
605-10-S25-1 through S25-4
 Superseded Accounting Standards Update No. 2017-14 11/22/2017
605-10-S50-1 Superseded Accounting Standards Update No. 2017-14 11/22/2017
605-10-S99-1 Superseded Accounting Standards Update No. 2017-14 11/22/2017
605-10-S99-1 Amended Accounting Standards Update No. 2015-10 06/12/2015
605-10-S99-1 Amended Accounting Standards Update No. 2012-03 08/27/2012
605-10-S99-1 Amended Accounting Standards Update No. 2009-07 09/15/2009
605-10-S99-1 Amended Accounting Standards Update No. 2009-03 08/24/2009

605-10-S25RecognitionSEC

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605-10-S50DisclosureSEC

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605-10-S99SEC MaterialsSEC

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Related subtopics