# ASC 605-980: Revenue Recognition — Regulated Operations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/980/) 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): 2026-09-10T00:53:45.930Z to 2026-09-10T00:54:08.764Z Record version: sha256:381fb4ffc783bb9a94806e25c38746e63654b3dce9460d35b6ad9c6dff13a2e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980: Revenue Recognition — Regulated Operations ### Machine-generated study aids ```json { "summary": "ASC 605-980 is the surviving remnant of the old revenue standard for entities with regulated operations (and nonutility generators), governing recognition of revenue from \"alternative revenue programs\" — regulator-authorized adjustments to future billings for past events. Type A programs adjust billings for weather abnormalities, broad external factors, or demand-side management; Type B programs award incentives for achieving objectives such as cost reduction or improved service. Revenue is recognized once the triggering events are complete if the program arises from a regulatory order allowing automatic rate adjustment, the amount is objectively determinable and probable of recovery, and collection occurs within 24 months after the end of the annual period of recognition (605-980-25-4).", "key_points": [ "Alternative revenue programs fall into Type A (adjust billings for weather abnormalities, broad external factors, or demand-side management initiatives) and Type B (incentive awards for achieving objectives such as cost reduction, milestones, or improved customer service) (605-980-25-2).", "After the specific events permitting billing are complete, additional revenue is recognized only if all three conditions in 605-980-25-4 are met: a regulatory commission order allowing automatic adjustment of future rates, an objectively determinable amount that is probable of recovery, and collection within 24 months following the end of the annual period of recognition.", "Regulator verification of the future rate adjustment does not prevent the adjustment from being considered automatic (605-980-25-4(a)).", "Long-term power supply contracts within the scope of Topic 842 on leases are excluded from this Subtopic (605-980-15-3); the guidance does apply to nonutility generators (605-980-15-2).", "When a regulated entity bills requested rate increases before the regulator rules, the loss contingency criteria in 450-20-25-2 determine whether a provision for estimated refunds is accrued; a wide range of possible refund that cannot be reasonably estimated may call into question whether the provisional revenue should be recognized at all (605-980-30-2).", "A recorded provision for estimated refunds must be adjusted subsequently as the estimate changes (605-980-35-1, referencing 980-405-25-1(a)).", "Alternative revenue program revenue must be presented separately from revenue from contracts with customers within the scope of Topic 606 in the statement of comprehensive income (605-980-45-1), and material refunds recognized in a period other than the period of the related revenue must be disclosed with the years in which the revenue was recognized (605-980-50-1)." ], "categories": [ "Revenue", "Recognition", "Presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Most of Topic 605 was superseded by ASU 2014-09, but this Subtopic survives because alternative revenue program revenue is not revenue from a contract with a customer — the counterparty right arises from the regulator's order, not the customer contract. The classic mistake is lumping it in with Topic 606 revenue on the income statement or forgetting the hard 24-month collection cutoff.", "related_topics": [ "606", "980-10", "980-405", "450-20", "842-10" ], "key_concepts": [ "alternative revenue program", "type a and type b programs", "automatic rate adjustment", "probable of recovery", "24-month collection criterion", "provisional rate increase refunds", "regulated operations", "separate presentation from topic 606 revenue" ] } ``` Source downloaded (UTC): 2026-09-10T00:53:45.930Z to 2026-09-10T00:53:45.930Z Record version: sha256:975ab763177a01ccb1bd21bc4cd34cc45b654da383e419d2d81d9cee082d351f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/605/980/#00-status) SEC content: no ##### [605-980-00-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:45.930Z to 2026-09-10T00:53:45.930Z Record version: sha256:6f187a17e23a3f15001a3fc694c55827d5b49ff18dab33b75a145829884a8f0d 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
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
980-605-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
980-605-15-3AmendedAccounting Standards Update No. 2016-0202/25/2016
980-605-15-3AmendedAccounting Standards Update No. 2014-0905/28/2014
980-605-25-5 through 25-18
SupersededAccounting Standards Update No. 2014-0905/28/2014
980-605-30-2AmendedAccounting Standards Update No. 2014-0905/28/2014
980-605-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
980-605-45-1AddedAccounting Standards Update No. 2014-0905/28/2014
980-605-50-1AmendedAccounting Standards Update No. 2015-0101/09/2015
Source downloaded (UTC): 2026-09-10T00:53:47.750Z to 2026-09-10T00:53:47.750Z Record version: sha256:8cd2445f897a8c73f27f84fe04160b57a164b2b949e125c69567b6ef8e0cf90b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/605/980/#05-overview-and-background) SEC content: no ##### [605-980-05-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:47.750Z to 2026-09-10T00:53:47.750Z Record version: sha256:bebaf8e0e5af7ece6c85afd4ff4d26cb1d0701d7e54e32f8800f41846ded9734 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for revenue recognition in alternative revenue programs. Source downloaded (UTC): 2026-09-10T00:53:49.840Z to 2026-09-10T00:53:49.840Z Record version: sha256:ec2d2df3db4931b3c9ee074332bd51a0390506034ca784738d710d745d35d99a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/605/980/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [605-980-15-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:49.840Z to 2026-09-10T00:53:49.840Z Record version: sha256:d28089230a55dfa82fc4c62037d692d8344d6df43263794f5e8d7980499c3eb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15, with specific qualifications and exceptions noted below. #### Entities ##### [605-980-15-2](https://asc.understandingaccounting.org/asc/605/980/#605-980-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:49.840Z to 2026-09-10T00:53:49.840Z Record version: sha256:68f61154e620289dd28d6d8d833e7a081bfef69687ccbd854bee11df2481f0bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic also applies to [nonutility generators](https://asc.understandingaccounting.org/glossary/n/#nonutility-generators "Entities owning electric generating plants built either for their own energy needs or to sell power, usually to rate-regulated entities, under long-term power sales contracts.") as they provide many of the services of entities with regulated operations. #### Transactions ##### [605-980-15-3](https://asc.understandingaccounting.org/asc/605/980/#605-980-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:49.840Z to 2026-09-10T00:53:49.840Z Record version: sha256:c3f4e4b76e5273d711ab100da2e4f64645a1d03fe98d70fdcb5c831a996a140b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The scope of this Subtopic excludes long-term power supply contracts if they are within the scope of Topic 842 on leases. For the considerations required to determine whether a long-term power sales contract arrangement contains a lease, see Subtopic 842-10. Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:ebabee9259511eb355632048b70807e6b578e1cd95b257254c0451cf8e5340a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/605/980/#25-recognition) SEC content: no #### Alternative Revenue Programs ##### [605-980-25-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:29bec02a77fd0881ed6a82768182eb30929ec2d455ed7bf6c58d34073c687cac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Traditionally, regulated utilities whose rates are determined based on cost of service invoice their customers by applying approved base rates (designed to recover the utility's [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments.") including a return on shareholders' investment) to usage. Some regulators of utilities have also authorized the use of additional, alternative revenue programs. The major alternative revenue programs currently used can generally be segregated into two categories, Type A and Type B. ##### [605-980-25-2](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:3b99256b9a416bf60a65d8520ff0779873bfda0cbfe7b85f321184dc20f4e8f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Type A programs adjust billings for the effects of weather abnormalities or broad external factors or to compensate the utility for demand-side management initiatives (for example, no-growth plans and similar conservation efforts). Type B programs provide for additional billings (incentive awards) if the utility achieves certain objectives, such as reducing costs, reaching specified milestones, or demonstratively improving customer service. ##### [605-980-25-3](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:e3c2d43ab32f526c0af48c9ceed18c5bd8d9906b743d20413212e595a3da888b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both types of programs enable the utility to adjust rates in the future (usually as a surcharge applied to future billings) in response to past activities or completed events. ##### [605-980-25-4](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:4b7ff3f28c160d2651c81d8c030ac451387c804e6a66a1a65ff1f0160a1f0352 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Once the specific events permitting billing of the additional revenues under Type A and Type B programs have been completed, the regulated utility shall recognize the additional revenues if all of the following conditions are met: 1. a The program is established by an order from the utility's regulatory commission that allows for automatic adjustment of future rates. Verification of the adjustment to future rates by the regulator would not preclude the adjustment from being considered automatic. 2. b The amount of additional revenues for the period is objectively determinable and is probable of recovery. 3. c The additional revenues will be collected within 24 months following the end of the annual period in which they are recognized. ##### [605-980-25-5](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:0bba470eb035301947ad03ac0f86cbe1b0fb5d1b75e366823d86211d8f694486 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/). ##### [605-980-25-6](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:e05b8fe70d07492e76ae85dad4a5474b68926863ff3e5e7d5285ec820a8e12fc 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/). ##### [605-980-25-7](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:0c873905458169656f70b43b839370cb52f6229945d53c5bb4d520e9bd7b22c8 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/). ##### [605-980-25-8](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:28d8e5bf2547ec0254471848ee9e710a25e8a4e1f0f7585a2de04276ce762c85 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/). ##### [605-980-25-9](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:7a70b0d2c81e6a55716b49b4974a7957c1219d4927c6cb3a45eb94ee83a64ea3 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/). ##### [605-980-25-10](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:3f0e2348b29a5a8028b70be29b50bfeed592010415c1da0d9e0a03cf639de833 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/). ##### [605-980-25-11](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:cf468fde8d3f18e2c99d92ef5592222058eb8af10592bd284edf30f67e985060 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/). ##### [605-980-25-12](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:08b7b71cbec24bfd6c1228e690733c9317a42e946762083330a2030d90528487 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/). ##### [605-980-25-13](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:c13e1980c25be3c0269ae4c5c56f1435e4ce7ce3228e3a8fb275e2c76e211f8e 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/). ##### [605-980-25-14](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:308dfccdd4faa2ed02343cbb65888dce9c0db80938f64449c186c3a9c253d738 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/). ##### [605-980-25-15](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:26e09ca7251a246a016ef5fe1c845ec3e5b9e4d5fafbb8940c8b1a060153a941 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/). ##### [605-980-25-16](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:8ab244b1033b402576f447a293bb82f8ee1eb23d3ee6e8a3af8e430d39dc731f 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/). ##### [605-980-25-17](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:f3d51b796f590821d92ad641c9dbd0d92b4a14aa53a71ef86f25bc227413a6d3 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/). ##### [605-980-25-18](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:55.847Z to 2026-09-10T00:53:55.847Z Record version: sha256:063b92789c829289580b2c23e0b83d17e90be83dd0da5f9a454be7285434ac62 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): 2026-09-10T00:53:58.500Z to 2026-09-10T00:53:58.500Z Record version: sha256:c6a19c4f807cd4be537ad75e97a8a45e38157d4e7d39b75ec839b386cdf9604f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/605/980/#30-initial-measurement) SEC content: no #### Alternative Revenue Programs—Revenue Collected Subject to Refund ##### [605-980-30-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:58.500Z to 2026-09-10T00:53:58.500Z Record version: sha256:976e200787370480374384f38105795cfe95e7c61dcacc89e5892a8e61b73de0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, a regulated entity is permitted to bill requested rate increases before the regulator has ruled on the request. ##### [605-980-30-2](https://asc.understandingaccounting.org/asc/605/980/#605-980-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:53:58.500Z to 2026-09-10T00:53:58.500Z Record version: sha256:25bccce34e87ce365787647f4ad89a7a7e6f49a952fb69f26cdec7b2cfd6aea6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When the revenue is originally recorded, the criteria in paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2) shall determine whether a provision for estimated refunds shall be accrued as a loss contingency. The inability to make a reasonable estimate of the amount of the obligation at the time of sale because of significant uncertainty about possible claims precludes accrual and, if the range of possible loss is wide, may raise a question about whether revenue should be recognized. Similarly, if the range of possible refund is wide and the amount of the refund cannot be reasonably estimated, there may be a question about whether it would be misleading to recognize the provisional revenue increase as income. Source downloaded (UTC): 2026-09-10T00:54:00.780Z to 2026-09-10T00:54:00.780Z Record version: sha256:357d93b49f61bac00ca624b9bd18e3408e9a1c193862aaf0735e51a217efa2cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/605/980/#35-subsequent-measurement) SEC content: no #### Alternative Revenue Programs—Revenue Collected Subject to Refund ##### [605-980-35-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:54:00.780Z to 2026-09-10T00:54:00.780Z Record version: sha256:f93c3a9624dee2f995e131b5e708581e5178f83a6c98396f0dc8fa30686efd77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a provision for estimated refunds is required by the criteria in paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2), it shall be adjusted subsequently if the estimate of the refund changes (see paragraph [980-405-25-1(a)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1)). Source downloaded (UTC): 2026-09-10T00:54:03.190Z to 2026-09-10T00:54:03.190Z Record version: sha256:fb4d351b168124573c1e167039ecfe6963df1ac64d5064d7411784b57a698d1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/605/980/#45-other-presentation-matters) SEC content: no #### Alternative Revenue Program Presentation ##### [605-980-45-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:54:03.190Z to 2026-09-10T00:54:03.190Z Record version: sha256:12dae4231db97a343a4879fd294a7c7f4574ce67008d7eb0127a5bd79b944a27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") arising from alternative revenue programs shall be presented separately from revenue arising from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") within the scope of Topic 606 in the statement of comprehensive income. Source downloaded (UTC): 2026-09-10T00:54:06.528Z to 2026-09-10T00:54:06.528Z Record version: sha256:be5b42ec56d8f8162d98f44e73445b56a4d67dd3d446c520f88316b722d39eb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-980-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/605/980/#50-disclosure) SEC content: no #### Refunds for Previously Recognized Revenue ##### [605-980-50-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:54:06.528Z to 2026-09-10T00:54:06.528Z Record version: sha256:c4f0367513de433586a7101dcbd2958d2e9e89555327f9a3614c5f33ad7bf00d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For refunds that are recognized in a period other than the period in which the related revenue was recognized and that have a material effect on net income, the entity shall disclose the effect on net income and indicate the years in which the related revenue was recognized. Such effect may be disclosed by including it, net of related income taxes, as a line item in the income statement.