ASC

ASC 605-30

Rights to Use

605 Revenue Recognition

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In brief

IntroductoryRevenueRecognitionTransition and effective datesLeases

ASC 605-30 was the legacy revenue recognition guidance for "Rights to Use" arrangements (transfers of rights to use property rather than sales of the property itself). Its substantive paragraphs — 605-30-05-1 (overview) and 605-30-25-1 (recognition) — were superseded by ASU 2014-09, so the subtopic is now an empty shell. Arrangements formerly analyzed here are accounted for under ASC 606 (or ASC 842 if the arrangement conveys a lease).

Key points (6)
  • 605-30-05-1 (overview of rights-to-use arrangements) was superseded by ASU 2014-09 and carries no remaining guidance.
  • 605-30-25-1 (recognition guidance for rights to use) was superseded by ASU 2014-09 and carries no remaining guidance.
  • Because all substantive content is superseded, ASC 605-30 imposes no current recognition, measurement, presentation, or disclosure requirements.
  • Revenue from transfers of a right to use is now evaluated under ASC 606's five-step model, including the licensing guidance in 606-10-55-54 through 55-65 where the right relates to intellectual property.
  • If a rights-to-use arrangement conveys the right to control the use of an identified asset for a period in exchange for consideration, ASC 842 governs instead of ASC 606 (see 606-10-15-2).
  • ASC 605 remains in the Codification only for historical reference and for entities that have not yet applied ASU 2014-09; effective dates and transition are in 606-10-65-1.

For students. This subtopic is a placeholder — every paragraph in it has been superseded by ASU 2014-09, so citing 605-30 as live authority is an error. The common misunderstanding is assuming rights-to-use arrangements still have their own special model; today they fall under ASC 606 (licenses of IP) or ASC 842 (leases).

rights to usesuperseded guidancelegacy revenue recognitionlicensingfive-step revenue modelscope exclusion for leases

Machine-generated study aid for ASC 605-30. Check the source paragraphs below.

605-30-00Status

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605-30-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
605-30-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
605-30-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014

605-30-05Overview and Background

Source downloaded: .Record version 1dea447d7020. Effective date must be checked in the source.

605-30-25Recognition

Source downloaded: .Record version 1b8226836731. Effective date must be checked in the source.

Related subtopics