# ASC 605-940: Revenue Recognition — Financial Services—Brokers and Dealers Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/940/) 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): 2026-09-10T00:48:49.511Z to 2026-09-10T00:49:01.667Z Record version: sha256:240cc6a75903831123be6f931af91020f38a64091ff51989b35371844b93ab57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940: Revenue Recognition — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "summary": "ASC 605-940 formerly provided industry-specific revenue recognition guidance for brokers and dealers in securities (e.g., trade-date recognition of commissions and related expenses, and measurement of such revenues). Every paragraph in the subtopic — Sections 05, 15, 25 and 30 — was superseded by ASU 2014-09, so the subtopic contains no remaining operative guidance. Broker-dealer revenue from contracts with customers is now accounted for under ASC 606, with related industry implementation guidance in ASC 940-605.", "key_points": [ "All content of ASC 605-940 (605-940-05-1, 15-1, 25-1 through 25-4, and 30-1 through 30-2) was superseded by Accounting Standards Update No. 2014-09.", "Because no paragraphs remain, ASC 605-940 imposes no recognition or measurement requirements and cannot be cited as authoritative support.", "Revenue from contracts with customers earned by brokers and dealers in securities is now recognized under the five-step model in ASC 606-10-05-4, not under legacy industry guidance.", "Industry-specific implementation guidance for broker-dealer revenue now resides in ASC 940-605 (Financial Services—Brokers and Dealers, Revenue Recognition).", "Amounts within the scope of other Topics — such as trading gains and losses on financial instruments — remain outside ASC 606 and are addressed under ASC 320, ASC 815, or ASC 940-320." ], "categories": [ "Revenue", "Industry-specific", "Transition and effective dates", "Recognition" ], "audience_level": "intermediate", "student_note": "This subtopic is a shell: its only content is a record that ASU 2014-09 wiped out the legacy broker-dealer revenue rules. The common mistake is citing 605-940 for trade-date commission recognition — go instead to ASC 606 for the model and ASC 940-605 for industry application.", "related_topics": [ "606", "940-605", "940-320", "340-40", "605" ], "key_concepts": [ "superseded guidance", "broker-dealer revenue", "commission revenue", "trade date accounting", "revenue from contracts with customers", "industry-specific revenue guidance" ] } ``` Source downloaded (UTC): 2026-09-10T00:48:49.511Z to 2026-09-10T00:48:49.511Z Record version: sha256:8684eccd7983ae2e254d6ef6f820ae0f37aeff9b6afe459b24dfe3dab1c73230 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/605/940/#00-status) SEC content: no ##### [605-940-00-1](https://asc.understandingaccounting.org/asc/605/940/#605-940-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:49.511Z to 2026-09-10T00:48:49.511Z Record version: sha256:c334f363e286868b9cd2b2d0bbf468f67a2b9be901b4020cff384a8e7abdef95 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
Half-TurnSupersededAccounting Standards Update No. 2014-0905/28/2014
Round-TurnSupersededAccounting Standards Update No. 2014-0905/28/2014
940-605-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
940-605-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
940-605-25-1 through 25-4
SupersededAccounting Standards Update No. 2014-0905/28/2014
940-605-30-1SupersededAccounting Standards Update No. 2014-0905/28/2014
940-605-30-2SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:48:52.371Z to 2026-09-10T00:48:52.371Z Record version: sha256:a637524b69befd78c59f7001f36f633ccb9a849af288fa7ca51bf8e9ce40c457 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/605/940/#05-overview-and-background) SEC content: no ##### [605-940-05-1](https://asc.understandingaccounting.org/asc/605/940/#605-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:52.371Z to 2026-09-10T00:48:52.371Z Record version: sha256:4808299fb183ddeec411d305c1c7171084872c9110fe4792c9732005a530753e 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): 2026-09-10T00:48:54.469Z to 2026-09-10T00:48:54.469Z Record version: sha256:56ce85aeb63e98d6b24b4601b1dcf9e12ad02851fd7dd44aadabb31acecb9601 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/605/940/#15-scope-and-scope-exceptions) SEC content: no ##### [605-940-15-1](https://asc.understandingaccounting.org/asc/605/940/#605-940-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:54.469Z to 2026-09-10T00:48:54.469Z Record version: sha256:3534fa7c9ec38e703c145163d3bb055bc14cdcf40160f8427ee6023a3ff908b0 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): 2026-09-10T00:48:56.158Z to 2026-09-10T00:48:56.158Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/605/940/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-10T00:48:59.184Z to 2026-09-10T00:48:59.184Z Record version: sha256:cb6ae506e199336773b0a1f4997ab7c226779a9280cbfbb0c91338b50a5fce0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/605/940/#25-recognition) SEC content: no ##### [605-940-25-1](https://asc.understandingaccounting.org/asc/605/940/#605-940-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:59.184Z to 2026-09-10T00:48:59.184Z Record version: sha256:59ce4ae4fb881d63b6bf2b401951f899ff4ee3dbdb0ca95fb154b1ae10ffead2 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/). ##### [605-940-25-2](https://asc.understandingaccounting.org/asc/605/940/#605-940-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:59.184Z to 2026-09-10T00:48:59.184Z Record version: sha256:6b8a9fb711ed51b2ebbb5324633503d48e77155a07141a1ddf087fd77fc4cb94 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/). ##### [605-940-25-3](https://asc.understandingaccounting.org/asc/605/940/#605-940-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:59.184Z to 2026-09-10T00:48:59.184Z Record version: sha256:86eca20cc9556894d19fd6aaa8f78949981fee2f88d1c49ed45676052c36b17c 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/). ##### [605-940-25-4](https://asc.understandingaccounting.org/asc/605/940/#605-940-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:59.184Z to 2026-09-10T00:48:59.184Z Record version: sha256:49fa5c5577f354e1f5ae97ef4f11a6bc108ec454c3aa0db391fc7cd4ff7d4da3 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): 2026-09-10T00:49:01.667Z to 2026-09-10T00:49:01.667Z Record version: sha256:17f18fff492a02a1f36c43fcf3913ad16a6303dbdbaeb8014510e4b55a2f6b6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-940-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/605/940/#30-initial-measurement) SEC content: no ##### [605-940-30-1](https://asc.understandingaccounting.org/asc/605/940/#605-940-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:01.667Z to 2026-09-10T00:49:01.667Z Record version: sha256:6c1f46267a1a67828baab2c6cac13504008bbf9f6c60998a42448ed65a5d668a 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/). ##### [605-940-30-2](https://asc.understandingaccounting.org/asc/605/940/#605-940-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:01.667Z to 2026-09-10T00:49:01.667Z Record version: sha256:9e4f17c9b13a5ef0691abd724bd6b5d080934413aa8efc19369af920c7147a61 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/).