ASC

ASC 605-910

Contractors—Construction

605 Revenue Recognition

Download JSONDownload Markdown6 paragraphs · 5 sectionsJump to summary

Source downloaded: .Record version cb635cbb52a4. Effective date must be checked in the source.

In brief

IntroductoryRevenueIndustry-specificTransition and effective dates

ASC 605-910 was the construction-contractor revenue guidance nested in the legacy revenue recognition topic (ASC 605). Every substantive paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers), leaving the subtopic as an empty shell. Construction contractors now apply ASC 606 for revenue and ASC 340-40 for contract costs.

Key points (5)
  • All content of this subtopic — 605-910-05-1, 15-1, 25-1, 50-1 and 50-2 — is marked 'Paragraph superseded by Accounting Standards Update No. 2014-09.'
  • Because nothing operative remains, no recognition, scope, or disclosure rule may be drawn from ASC 605-910 for periods after ASU 2014-09 became effective.
  • Revenue from construction-type contracts is now recognized under ASC 606, generally by measuring progress toward complete satisfaction of a performance obligation satisfied over time (606-10-25-27).
  • Costs to obtain and fulfill construction contracts are addressed by ASC 340-40 rather than the superseded legacy contract-cost guidance.
  • Remaining industry-specific construction guidance resides in ASC 910 (Contractors—Construction) outside the superseded revenue sections.

For students. Cite this subtopic only for historical or comparative-period questions; the common mistake is quoting legacy percentage-of-completion rules from ASC 605-910 (or ASC 605-35) as if they were still authoritative. For current construction revenue answers, go to ASC 606 and ASC 340-40.

superseded guidanceconstruction-type contractspercentage-of-completionrevenue from contracts with customerscontract costsindustry-specific revenue guidancetransition to asc 606

Machine-generated study aid for ASC 605-910. Check the source paragraphs below.

605-910-00Status

Source downloaded: .Record version f48d90a9faa6. Effective date must be checked in the source.

605-910-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
910-605-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-605-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-605-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-605-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-605-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014

605-910-05Overview and Background

Source downloaded: .Record version e474818d5888. Effective date must be checked in the source.

605-910-15Scope and Scope Exceptions

Source downloaded: .Record version e3c0e81cc297. Effective date must be checked in the source.

605-910-25Recognition

Source downloaded: .Record version 35809b678dc6. Effective date must be checked in the source.

605-910-50Disclosure

Source downloaded: .Record version 586d558d7abb. Effective date must be checked in the source.

Related subtopics