ASC

ASC 605-25

Multiple-Element Arrangements

605 Revenue Recognition

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In brief

IntermediateRevenueRecognitionTransition and effective dates

ASC 605-25 was the legacy guidance on multiple-element (multiple-deliverable) revenue arrangements — how a vendor decided whether deliverables in one contract were separate units of accounting and how to allocate arrangement consideration among them. Every paragraph of the subtopic has been superseded, principally by ASU 2014-09 (Revenue from Contracts with Customers), with a few earlier paragraphs superseded by ASU 2009-13. There is therefore no operative guidance left in 605-25; entities apply ASC 606 (and ASC 340-40) instead.

Key points (6)
  • All sections of 605-25 (05, 15, 25, 30, 50, 55, and the 65 transition paragraph) consist solely of paragraphs marked 'superseded,' so the subtopic imposes no current requirements.
  • ASU 2014-09 superseded the bulk of the subtopic, including scope (605-25-15-1 through 15-4), separation criteria (605-25-25-1 through 25-6), measurement/allocation (e.g., 605-25-30-1, 30-2, 30-4 through 30-7), disclosure (605-25-50-1 and 50-2), and implementation guidance and illustrations (605-25-55-1 through 55-93).
  • ASU 2009-13 (the earlier multiple-deliverable amendments that introduced the selling-price hierarchy and eliminated the residual method) superseded 605-25-30-3, 30-8, 30-9 and 605-25-55-48 through 55-50.
  • The transition paragraph 605-25-65-1 is itself superseded, confirming that no legacy transition relief remains in this subtopic.
  • Multiple-element questions are now answered under ASC 606: identifying performance obligations (606-10-25-14 through 25-22) and allocating the transaction price on a relative standalone selling price basis (606-10-32-28 et seq.).
  • Historical financial statements and comparative periods prepared before the ASC 606 adoption date may still reflect 605-25's unit-of-accounting and selling-price-hierarchy (VSOE, TPE, best estimate of selling price) model.

For students. Know this subtopic as history: the legacy 'separate unit of accounting' and relative-selling-price allocation model was replaced by ASC 606's performance obligation and standalone selling price framework. The common mistake is citing 605-25 as live authority or assuming its separation criteria (e.g., standalone value, general right of return) still control — they do not.

multiple-deliverable arrangementsunit of accountingseparation criteriaallocation of arrangement considerationrelative selling price methodvendor-specific objective evidencesuperseded guidanceperformance obligation

Machine-generated study aid for ASC 605-25. Check the source paragraphs below.

605-25-00Status

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605-25-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Fair Value Superseded Accounting Standards Update No. 2014-09 05/28/2014
Fair Value (3rd def.) Added Accounting Standards Update No. 2012-04 10/01/2012
Market Participant Superseded Accounting Standards Update No. 2014-09 05/28/2014
Orderly Transaction Superseded Accounting Standards Update No. 2014-09 05/28/2014
Related Parties Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-05-1 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-05-2 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-05-2 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-15-1 through 15-4
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-15-2A Amended Accounting Standards Update No. 2010-17 04/28/2010
605-25-15-3A Amended Accounting Standards Update No. 2015-10 06/12/2015
605-25-15-3A Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-15-4 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-25-1 through 25-6
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-25-2 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-25-5 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-25-6 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-1 through 30-7
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-30-2 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-3 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-4 Amended Accounting Standards Update No. 2012-04 10/01/2012
605-25-30-4 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-5 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-6A Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-6B Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-6C Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-7 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-8 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-30-9 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-50-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-50-1 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-50-2 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-50-2 Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-1 through 55-47
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-55-1 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-2 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-3 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-7 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-8 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-9 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-11 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-12 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-15 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-17 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-19 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-23 through 55-30
 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-32 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-34 through 55-47
 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-48 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-49 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-50 Superseded Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-51 through 55-93
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
605-25-55-51 through 55-56
 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-56A Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-56B Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-57 through 55-61
 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-68 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-69 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-73 Amended Accounting Standards Update No. 2009-13 10/07/2009
605-25-55-75 through 55-93
 Added Accounting Standards Update No. 2009-13 10/07/2009
605-25-65-1 Added Accounting Standards Update No. 2009-13 10/07/2009

605-25-05Overview and Background

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605-25-15Scope and Scope Exceptions

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605-25-20Glossary

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605-25-25Recognition

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605-25-30Initial Measurement

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605-25-50Disclosure

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605-25-55Implementation Guidance and Illustrations

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605-25-65Transition and Open Effective Date Information

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Related subtopics