# ASC 605-28: Revenue Recognition — Milestone Method Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/28/) 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): 2026-09-10T00:43:06.050Z to 2026-09-10T00:43:22.056Z Record version: sha256:b439eade290f6b2641bb3832fdf7564b463c0481ca27f0f823f37cae4bb49ea6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28: Revenue Recognition — Milestone Method ### Machine-generated study aids ```json { "summary": "ASC 605-28 formerly provided the \"milestone method\" of revenue recognition, an accounting policy election that allowed a vendor in a research-and-development arrangement to recognize contingent milestone consideration in its entirety in the period the milestone was achieved, if the milestone was deemed substantive. Every paragraph of this subtopic — scope, recognition, disclosure, and transition — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Milestone-type contingent consideration is now accounted for as variable consideration under ASC 606, subject to the constraint on variable consideration.", "key_points": [ "Every paragraph of ASC 605-28 (605-28-05-1, 15-1 through 15-4, 25-1 through 25-3, 50-1, 50-2, and 65-1) was superseded by Accounting Standards Update No. 2014-09.", "Because the subtopic contains no operative guidance, the milestone method is no longer an available accounting policy for entities that have adopted ASC 606.", "Consideration contingent on achieving a milestone is now evaluated as variable consideration under ASC 606-10-32-5 through 32-14, including the constraint on estimates of variable consideration.", "The subtopic remains in the Codification only as a historical shell; researchers should treat it as superseded legacy GAAP and look to ASC 606 and ASC 340-40 instead.", "Legacy financial statements or comparative periods prepared before ASC 606 adoption may still reflect milestone method policy elections and the related disclosures formerly required by 605-28-50." ], "categories": [ "Revenue", "Recognition", "Transition and effective dates", "Disclosure" ], "audience_level": "intermediate", "student_note": "Know this subtopic mainly as a dead letter: the milestone method was eliminated by ASU 2014-09, so exam answers about milestone payments should apply ASC 606's variable consideration and constraint analysis. The common mistake is assuming milestone payments can still be recognized in full when achieved simply because the milestone is \"substantive.\"", "related_topics": [ "606", "606-10", "340-40", "605-25", "808", "730-20" ], "key_concepts": [ "milestone method", "superseded guidance", "substantive milestone", "research and development arrangement", "contingent consideration", "variable consideration", "accounting policy election" ] } ``` Source downloaded (UTC): 2026-09-10T00:43:06.050Z to 2026-09-10T00:43:06.050Z Record version: sha256:e1d2326b9ecab3a72b4a890bfe8e4dfc288bbd9efc8c822beab4c879d5bcb375 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/605/28/#00-status) SEC content: no ##### [605-28-00-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:06.050Z to 2026-09-10T00:43:06.050Z Record version: sha256:c41176164c76c443df9fae50bdb0472e7781a4433f4393daa690dbdf5e1ea2d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Milestone (2nd def.)SupersededAccounting Standards Update No. 2014-0905/28/2014
MilestoneAddedAccounting Standards Update No. 2010-1704/28/2010
605-28-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
605-28-05-1AddedAccounting Standards Update No. 2010-1704/28/2010
605-28-15-1 through 15-4
SupersededAccounting Standards Update No. 2014-0905/28/2014
605-28-15-1 through 15-4
AddedAccounting Standards Update No. 2010-1704/28/2010
605-28-25-1 through 25-3
SupersededAccounting Standards Update No. 2014-0905/28/2014
605-28-25-1 through 25-3
AddedAccounting Standards Update No. 2010-1704/28/2010
605-28-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
605-28-50-1AddedAccounting Standards Update No. 2010-1704/28/2010
605-28-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014
605-28-50-2AddedAccounting Standards Update No. 2010-1704/28/2010
605-28-65-1AddedAccounting Standards Update No. 2010-1704/28/2010
Source downloaded (UTC): 2026-09-10T00:43:08.921Z to 2026-09-10T00:43:08.921Z Record version: sha256:12c3ec7a8ce97ec3d68bd1e020b530247a5c22ad88cec35dc979b38a9076ae91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/605/28/#05-overview-and-background) SEC content: no ##### [605-28-05-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:08.921Z to 2026-09-10T00:43:08.921Z Record version: sha256:dece2702df6048f6afee06dad10666c295eec5401f3986a7705b13e0806b9616 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/). Source downloaded (UTC): 2026-09-10T00:43:13.009Z to 2026-09-10T00:43:13.009Z Record version: sha256:1ea7115d5a8d3fbee90abd0c0e7478e4e24e3284602f9a89f9f11beb3870857a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/605/28/#15-scope-and-scope-exceptions) SEC content: no ##### [605-28-15-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:13.009Z to 2026-09-10T00:43:13.009Z Record version: sha256:94de882bbd89d206bf39ac439d10ff4937e1f8e8759239a099a32e00260de138 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/). ##### [605-28-15-2](https://asc.understandingaccounting.org/asc/605/28/#605-28-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:13.009Z to 2026-09-10T00:43:13.009Z Record version: sha256:5a4dc0a2ea6dbdecf864bb61ae54d9bae690eeffaf7b3e010ae77ef4a30d3334 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/). ##### [605-28-15-3](https://asc.understandingaccounting.org/asc/605/28/#605-28-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:13.009Z to 2026-09-10T00:43:13.009Z Record version: sha256:5805f82ee29f569db3a0128c839b4a4f3867d77ee6a5cdf2a90b9a0ccece78e0 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/). ##### [605-28-15-4](https://asc.understandingaccounting.org/asc/605/28/#605-28-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:13.009Z to 2026-09-10T00:43:13.009Z Record version: sha256:e4054f88565ed79c4d2a9436c5d30fb86c7a868dc3044154ac86bc81fb48bcb2 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/). Source downloaded (UTC): 2026-09-10T00:43:15.031Z to 2026-09-10T00:43:15.031Z Record version: sha256:b16ef035b9ffc40d4919a45135a38f2437e5f10453d32e3f5f6382099df8f128 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/605/28/#25-recognition) SEC content: no ##### [605-28-25-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:15.031Z to 2026-09-10T00:43:15.031Z Record version: sha256:4e0ce5a32d28abe0519d722299d5339ee8aadfd5977d3df6bde967269c2f128d 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/). ##### [605-28-25-2](https://asc.understandingaccounting.org/asc/605/28/#605-28-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:15.031Z to 2026-09-10T00:43:15.031Z Record version: sha256:5cb3fb590830d1829b4baaa7a9cbb7de230621082ef91e4f672b467f4b154098 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/). ##### [605-28-25-3](https://asc.understandingaccounting.org/asc/605/28/#605-28-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:15.031Z to 2026-09-10T00:43:15.031Z Record version: sha256:f71a8583188f91ac20fdf4398812e1a097c122f5bfe7dd5385323a60aceb0eaf 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/). Source downloaded (UTC): 2026-09-10T00:43:18.103Z to 2026-09-10T00:43:18.103Z Record version: sha256:6112b04411b80b0bebfbdb2edf38825f935e1294e531ffc154be93bae5e6708a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/605/28/#50-disclosure) SEC content: no ##### [605-28-50-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:18.103Z to 2026-09-10T00:43:18.103Z Record version: sha256:0667f77d45a951ef502fc8eed3f35e7dd09bb69d30024636cedbd7f41f39f585 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/). ##### [605-28-50-2](https://asc.understandingaccounting.org/asc/605/28/#605-28-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:18.103Z to 2026-09-10T00:43:18.103Z Record version: sha256:17129eb9f1d3a18f60d9d58c039e204c5ccdac83b08a61def511dd100980da76 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/). Source downloaded (UTC): 2026-09-10T00:43:22.056Z to 2026-09-10T00:43:22.056Z Record version: sha256:c599324e39d52a73d65eeca9d3a509b5e87ecf4458a344b6635c64389f9e945f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-28-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/605/28/#65-transition-and-open-effective-date-information) SEC content: no ##### [605-28-65-1](https://asc.understandingaccounting.org/asc/605/28/#605-28-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:43:22.056Z to 2026-09-10T00:43:22.056Z Record version: sha256:12644735f8a1b8d15ad61014e29346e2dfda8d4f5ea1517caa9613574f0fadc1 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/).