# ASC 605-946: Revenue Recognition — Financial Services—Investment Companies Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/946/) 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): 2026-09-10T00:49:48.732Z to 2026-09-10T00:50:00.714Z Record version: sha256:a768e40b2b75d4d2c63daf5495bd0251d02d2bc294b77d082999e172c38cb862 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946: Revenue Recognition — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "ASC 605-946 was the legacy revenue recognition guidance for investment company activities (notably investment advisers' incentive/performance-based fee arrangements) under the superseded Topic 605 model. Every paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic now contains no operative guidance; revenue from such contracts is accounted for under ASC 606 (with related costs under ASC 340-40).", "key_points": [ "All paragraphs of this subtopic (605-946-05-1 through 05-11, 15-1 through 15-2, 25-1 through 25-8, and 50-1) were superseded by Accounting Standards Update No. 2014-09.", "Because the subtopic is fully superseded, it provides no recognition, scope, or disclosure requirements that an entity may currently apply.", "Investment advisers and investment companies that previously looked to 605-946 for incentive-based or performance-based fee revenue now apply the five-step model in ASC 606, including the constraint on variable consideration in 606-10-32-11 through 32-13.", "ASC 606-10-55-65 (the sales- or usage-based royalty exception) and the variable consideration constraint drive when performance/incentive fees may be recognized, replacing the legacy 'Method 1/Method 2' approaches formerly discussed here.", "Superseded guidance may remain relevant only for understanding comparative periods presented before adoption of ASU 2014-09 under the transition provisions in 606-10-65-1." ], "categories": [ "Revenue", "Industry-specific", "Transition and effective dates", "Recognition" ], "audience_level": "intermediate", "student_note": "The only thing to know here is that this subtopic is entirely dead letter — citing it as live GAAP is the classic mistake; incentive and performance fees earned by investment advisers are now measured under ASC 606's variable consideration constraint.", "related_topics": [ "606", "606-10", "340-40", "946", "946-605", "605" ], "key_concepts": [ "superseded guidance", "incentive-based management fees", "performance fees", "investment company revenue", "variable consideration constraint", "investment adviser" ] } ``` Source downloaded (UTC): 2026-09-10T00:49:48.732Z to 2026-09-10T00:49:48.732Z Record version: sha256:11e8b651ce182c71b88e9c4d89a69fd9909b3b020188faf88def8665d1f79811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/605/946/#00-status) SEC content: no ##### [605-946-00-1](https://asc.understandingaccounting.org/asc/605/946/#605-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:48.732Z to 2026-09-10T00:49:48.732Z Record version: sha256:2e0de475eebd44498792d17791e17ddb91e3978abe9af92ddae81843f3120ad7 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
12b-1SupersededAccounting Standards Update No. 2014-0905/28/2014
B SharesSupersededAccounting Standards Update No. 2014-0905/28/2014
Closed-End FundsSupersededAccounting Standards Update No. 2014-0905/28/2014
Contingent-Deferred Sales LoadSupersededAccounting Standards Update No. 2014-0905/28/2014
DistributorSupersededAccounting Standards Update No. 2014-0905/28/2014
Front-End LoadSupersededAccounting Standards Update No. 2014-0905/28/2014
Front-End LoadAddedAccounting Standards Update No. 2014-0603/14/2014
Front-End Sales FeeSupersededAccounting Standards Update No. 2014-0603/14/2014
Offering CostsSupersededAccounting Standards Update No. 2014-0905/28/2014
946-605-05-1 through 05-11
SupersededAccounting Standards Update No. 2014-0905/28/2014
946-605-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
946-605-15-2SupersededAccounting Standards Update No. 2014-0905/28/2014
946-605-25-1 through 25-8
SupersededAccounting Standards Update No. 2014-0905/28/2014
946-605-25-8AmendedAccounting Standards Update No. 2014-0603/14/2014
946-605-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:5137c5d7ea245c3c2ba8fc1e57591e4d8b4c243d0adad4f84fac2efadc22b170 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/605/946/#05-overview-and-background) SEC content: no ##### [605-946-05-1](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:0e5bf313f1ca3e04a37bedf00ce60bef28b91de40304272c70dcaf131f1d3193 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/). ##### [605-946-05-2](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:2fd36f4cc52cf4cbb6d1c438f3eeac460a1af850717dc537086751388d9f5e88 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/). ##### [605-946-05-3](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:a1090e3812522ca4de6c000d70fde693beae0888d60d96b9d3f1d654b4c7fd8f 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/). ##### [605-946-05-4](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:8a7159e722ed2ad390bb229c62ebb11e3be2a8f406d5bf2a959a7b1a7683dd06 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/). ##### [605-946-05-5](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:11697667e22d9b50936a9579e567447239d90862afede346fa1a48f5782e4d05 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/). ##### [605-946-05-6](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:65349e004fb02c96291b18dda526a8bf84ee1ba9ec3997a381490873b9b94335 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/). ##### [605-946-05-7](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:b8254d214a53645edbd53b306607b1829a863b1fb2b48086b6ab30fabe2a4518 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/). ##### [605-946-05-8](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:9e1811088f1aa5212789d9a697e6ce24914f025ee711c72fa9c8a5d7ce3ce875 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/). ##### [605-946-05-9](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:bb866c837c7d29eba30ce15e5ce63ffdd0c306d8afca9c1ec9cb8d4b132761ca 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/). ##### [605-946-05-10](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:b8d28fc8633d49efbbdd158ead0b5638cddbd49b984c5bcc11ad93e63cfd92f1 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/). ##### [605-946-05-11](https://asc.understandingaccounting.org/asc/605/946/#605-946-05-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:52.404Z to 2026-09-10T00:49:52.404Z Record version: sha256:fb524553a4a025f1a553494105c9682a1198653b0bf2de4cd84da334b419cebc 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): 2026-09-10T00:49:54.999Z to 2026-09-10T00:49:54.999Z Record version: sha256:4f2cfceaccd71706d2bc6dce3b4382478548762d881dd9894f60ec0cef4e8dec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/605/946/#15-scope-and-scope-exceptions) SEC content: no ##### [605-946-15-1](https://asc.understandingaccounting.org/asc/605/946/#605-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:54.999Z to 2026-09-10T00:49:54.999Z Record version: sha256:001808b9e3517e73dd48f80dee31dbf6e1dfb31b555f0a31713538f996848adc 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/). ##### [605-946-15-2](https://asc.understandingaccounting.org/asc/605/946/#605-946-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:54.999Z to 2026-09-10T00:49:54.999Z Record version: sha256:d89fa9d9ddba5b05a3dd4662d654cfdcee942dd7a54e4154de275ef49ae33a45 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): 2026-09-10T00:49:58.300Z to 2026-09-10T00:49:58.300Z Record version: sha256:3cef68d5906ec1e3cf8b81a0a26c2d41fa7e573ec4d77c133380915656a8b750 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/605/946/#25-recognition) SEC content: no ##### [605-946-25-1](https://asc.understandingaccounting.org/asc/605/946/#605-946-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:58.300Z to 2026-09-10T00:49:58.300Z Record version: sha256:52d4be55faa6fc70ca1b192fe995a17319caf18b10723bcf6f2e6272b5152d15 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/). ##### [605-946-25-2](https://asc.understandingaccounting.org/asc/605/946/#605-946-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:58.300Z to 2026-09-10T00:49:58.300Z Record version: sha256:50647d9be8df4869eb7cea726b976dbc58a1e7628a5a3fb01695d05d9734c302 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [605-946-25-7](https://asc.understandingaccounting.org/asc/605/946/#605-946-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:58.300Z to 2026-09-10T00:49:58.300Z Record version: sha256:0154049e64053c4c54404bf7bc0affae9dfa3dfe9052aa097c376054f8cf52d6 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/). ##### [605-946-25-8](https://asc.understandingaccounting.org/asc/605/946/#605-946-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:58.300Z to 2026-09-10T00:49:58.300Z Record version: sha256:3bf5e14cc6b91f73c8438b93d002b4ae35a649190946d8b1c0ee329e07490165 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): 2026-09-10T00:50:00.714Z to 2026-09-10T00:50:00.714Z Record version: sha256:eccc3706013b3bdd8dba5f6e98e04d2ab21a7dade321483082cd3fdc44e7d3a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/605/946/#50-disclosure) SEC content: no ##### [605-946-50-1](https://asc.understandingaccounting.org/asc/605/946/#605-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:50:00.714Z to 2026-09-10T00:50:00.714Z Record version: sha256:2d4ff8a9902a062c22a47275c33b1c81931fd63572a2d623b8a625c10a32696c 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/).