# ASC 605-20-25: Revenue Recognition — Services — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/605/20/#25-recognition)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:20c34d9108b7cecf1007dacd081c39f4507e10f03338a4497942e78e8c09a2c1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 605-20-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/605/20/#25-recognition)

SEC content: no

#### Separately Priced Extended Warranty and Product Maintenance Contracts

##### [605-20-25-1](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:503df7bc98fed6759fb66e39f8ad5212464d5d1e6f78d02f7feee35454a5e4be

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Separately priced contracts](https://asc.understandingaccounting.org/glossary/s/#separately-priced-contracts "An agreement under which the customer has the option to purchase an extended warranty or a product maintenance contract for an expressly stated amount separate from the price of the product.") for [extended warranty](https://asc.understandingaccounting.org/glossary/e/#extended-warranty "An agreement to provide warranty protection in addition to the scope of coverage of the manufacturer's original warranty, if any, or to extend the period of coverage provided by the manufacturer's original warranty.") and [product maintenance contracts](https://asc.understandingaccounting.org/glossary/p/#product-maintenance-contracts "An agreement to perform certain agreed-upon services to maintain a product for a specified period of time. The terms of the contract may take different forms, such as an agreement to periodically perform a particular service a specified number of times over a specified period of time, or an agreement to perform a particular service as the need arises over the term of the contract.") provide warranty protection or product services and the contract price of these contracts is not included in the original price of the product covered by the contracts.

##### [605-20-25-2](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:f6f6db7fdd0f95e071e59d1a228d36d6fec708d511affcfe2cc8cd66c6acbadd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-3](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:bbab21efa63ff68f48bd5173782b80f049f403518c4ce500bf9e45e4b2439fae

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-4](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:83355cbaa02c3ede7384af83955f0dc231bac3ea7cd4a84e2def9966f1784066

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-5](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:6b44289ef48fddf7b6c682b77359ccf12928fccb254c8c6eade8973c9e9259c1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-6](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:a8c1e9b08cc74f7e62ca35f587421ef3ad3c7129180887ef2722ec3a2ecddbd8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A loss shall be recognized on extended warranty or product maintenance contracts if the sum of the expected costs of providing services under the contracts and any asset recognized for the incremental cost of obtaining a contract exceeds the related unearned revenue ([contract liability](https://asc.understandingaccounting.org/glossary/c/#contract-liability "An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.")). Extended warranty or product maintenance contracts shall be grouped in a consistent manner to determine if a loss exists. A loss shall be recognized first by charging to expense any recognized asset for the incremental costs of obtaining a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations."), determined in accordance with the guidance in paragraphs

[340-40-25-1 through 25-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1)

for contracts within scope of Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from contracts with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). If the loss is greater than the recognized asset for the incremental costs of obtaining a contract, a liability shall be recognized for the excess.

##### [605-20-25-7](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:688497a4aa66084f9e252896f3a38de20031435f49ef136df9560bba1d954d09

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-8](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:384ac55e54e8dd57c4bb0211a0f535db508387ff8de2e037ea8b74a0916fa10c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-9](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:57c6243821b00763fb74cffa9177e16eed6bd8ac48c731749f9d6d993a8f2b4d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-10](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-10)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:957b8485d2b758b3a0b825c1a870cf8f7fa8e1661455c4f8e2c73c8299ea46a2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-11](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-11)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:fb58e1ccbac51fbc5fe22880c85ac7ad9da67cb903eebfe794c59baa4c15d035

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-12](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-12)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:9e92f966a68cc61a6ba5eee0cc6825a166ae78b920ad6ca7126d96cacc598edd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-13](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-13)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:5cd5e286ddade7d921aae9e23da62235f3c28debfd01169370227128b313b334

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-14](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-14)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:59e08f559afb89d3923e4fb520624bd6c172f6cd97c2030b87b8ef20ff8301f1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-15](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-15)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:86d08be39e9e6dbbe92b31751f7b4b7a2727b96c2926da832fe36c866ed7962b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-16](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-16)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:26c9d541250a25da0931cc9ba5e5c1b9d5b185a5ef531f8c4cc1b1f8f901f345

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-17](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-17)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:f2fc5713f3a67804df1049d6d8f9b905ed166162c57cfb3b0d7f7450a04206bd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-18](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-18)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:326ca7b350104709ad3ba94a30f83d20c9eab971a3a7c393921083994c296748

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [605-20-25-19](https://asc.understandingaccounting.org/asc/605/20/#605-20-25-19)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:42:21.141Z to 2026-09-10T00:42:21.141Z

Record version: sha256:74d9caa2b6b59c2eafc82e2ad33365bddb3bf8a64f47d0f75243978ea6a3f884

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).