ASC

ASC 605-912

Contractors—Federal Government

605 Revenue Recognition

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In brief

IntermediateRevenueIndustry-specificTransition and effective datesRecognition

ASC 605-912 was the legacy industry guidance on revenue recognition for contractors with the U.S. federal government, covering matters such as recognition of fees, contract terminations, renegotiation and price redetermination. Every paragraph in the subtopic (Sections 05, 15, 25, and 50) was superseded by ASU 2014-09, so the subtopic contains no remaining substantive guidance. Federal government contractors now apply ASC 606 (with related guidance in ASC 340-40) and, if applicable, the residual industry guidance in ASC 912.

Key points (5)
  • All paragraphs of ASC 605-912 (605-912-05-1 through 05-5, 15-1, 25-1 through 25-38, and 50-1 through 50-2) were superseded by Accounting Standards Update No. 2014-09.
  • Because the subtopic is fully superseded, it supplies no recognition, measurement, presentation, or disclosure requirements for current reporting periods.
  • Revenue from contracts with the federal government is now accounted for under ASC 606, Revenue from Contracts with Customers, using the five-step model.
  • Costs of obtaining and fulfilling federal contracts are addressed by ASC 340-40 rather than by legacy 605-912 guidance.
  • The subtopic remains in the Codification only as a historical marker; entities that have not yet transitioned would look to the pre-ASU 2014-09 text in the archived Codification.

For students. Know that ASU 2014-09 wiped out the old industry-by-industry revenue rules, including this one for federal contractors—citing 605-912 as live authority is the classic error. Point instead to ASC 606 (and ASC 340-40 for contract costs), noting ASC 912 still holds non-revenue federal-contractor guidance.

superseded guidancefederal government contractorsrevenue recognitiontransition to asc 606industry-specific revenue guidancecontract with a customer

Machine-generated study aid for ASC 605-912. Check the source paragraphs below.

605-912-00Status

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605-912-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Cost-Plus-Fixed-Fee Contract Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-605-05-1 through 05-5
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-605-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-605-25-1 through 25-38
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-605-50-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-605-50-2 Superseded Accounting Standards Update No. 2014-09 05/28/2014

605-912-05Overview and Background

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605-912-15Scope and Scope Exceptions

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605-912-20Glossary

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605-912-25Recognition

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605-912-50Disclosure

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Related subtopics