{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/606/10/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"606","topic_title":"Revenue from Contracts with Customers","subtopic":"606-10","subtopic_title":"Overall","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"606-10-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all entities.
","snippet":"The guidance in this Subtopic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e00f5997528b7874d6bdab1be2fd10f06c86e2b2d6315ad9a01de3641030103","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:155687b68a18c1456bdd0c401bcb08722ccc0e02fae890fc780fc88402b48505","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"606-10-15-2","para":"15-2","html":"
An entity shall apply the guidance in this Topic to all contracts with customers, except the following:
  1. a
    Lease contracts within the scope of Topic 842, Leases.
  2. b
    Contracts within the scope of Topic 944, Financial Services—Insurance.
  3. c
    Financial instruments and other contractual rights or obligations within the scope of the following Topics:
    1. 1
      Topic 310, Receivables
    2. 2
      Topic 320, Investments—Debt Securities
    3. 2a
      Topic 321, Investments—Equity Securities
    4. 3
      Topic 323, Investments—Equity Method and Joint Ventures
    5. 4
      Topic 325, Investments—Other
    6. 5
      Topic 405, Liabilities
    7. 6
      Topic 470, Debt
    8. 7
      Topic 815, Derivatives and Hedging
    9. 8
      Topic 825, Financial Instruments
    10. 9
      Topic 860, Transfers and Servicing.
  4. d
    Guarantees (other than product or service warranties) within the scope of Topic 460, Guarantees.
  5. e
    Nonmonetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers. For example, this Topic would not apply to a contract between two oil companies that agree to an exchange of oil to fulfill demand from their customers in different specified locations on a timely basis. Topic 845 on nonmonetary transactions may apply to nonmonetary exchanges that are not within the scope of this Topic.
","snippet":"An entity shall apply the guidance in this Topic to all contracts with customers, except the following:\n(a) Lease contracts within the scope of Topic 842, Leases.\n(b) Contracts within the scope of Topic 944, Financial Se…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c5538807410e384605322df8098b7203e3de087fe256a7a950ea27bc7350c670","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"citation":"606-10-15-2A","para":"15-2A","html":"
An entity shall consider the guidance in Subtopic 958-605 on not-for-profit entities—revenue recognition—contributions when determining whether a transaction is a contribution within the scope of Subtopic 958-605 or a transaction within the scope of this Topic.
","snippet":"An entity shall consider the guidance in Subtopic 958-605 on not-for-profit entities—revenue recognition—contributions when determining whether a transaction is a contribution within the scope of Subtopic 958-605 or a tr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29b28379f79309c68642a9653f970f40e9d42f51449e8d9eff1073b496b81311","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"citation":"606-10-15-3","para":"15-3","html":"
An entity shall apply the guidance in this Topic to a contract (other than a contract listed in paragraph 606-10-15-2) only if the counterparty to the contract is a customer. A customer is 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.
","snippet":"An entity shall apply the guidance in this Topic to a contract (other than a contract listed in paragraph 606-10-15-2) only if the counterparty to the contract is a customer. A customer is a party that has contracted wit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a2665dea31cd7dc6daa06e97586c69309af647d6aa27d56cde4da770ab97f79","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"citation":"606-10-15-3A","para":"15-3A","html":"
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
606-10-65-3An entity shall apply the guidance in this Topic, including the guidance on noncash consideration in paragraphs
606-10-32-21 through 32-24
, to a contract with share-based noncash consideration (for example, shares, share options, or other equity instruments) from a customer for the transfer of goods or services. The guidance in other Topics (including Topic 815 on derivatives and hedging and Topic 321 on equity securities) does not apply to share-based noncash consideration from a customer for the transfer of goods or services unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under this Topic. To assess whether the right is unconditional under this Topic, only the contract terms that relate to the entity’s performance obligations (or a specific outcome of the entity’s performance) within the scope of this Topic are evaluated. The determination of whether the right is unconditional is consistent with the guidance in paragraph 606-10-45-4, which states that a right to consideration is unconditional if only the passage of time is required before payment of that consideration is due.
","snippet":"Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:606-10-65-3An entity shall apply the guidance in this Topic, including the guidance on noncash consideration in paragraphs 606-10-32-21 thro…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:250f3e5a7fa0d2bf1176207b20d0fb9f993866470fc46e72621e791f6b251575","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"citation":"606-10-15-4","para":"15-4","html":"
A contract with a customer may be partially within the scope of this Topic and partially within the scope of other Topics listed in paragraph 606-10-15-2.
  1. a
    If the other Topics specify how to separate and/or initially measure one or more parts of the contract, then an entity shall first apply the separation and/or measurement guidance in those Topics. An entity shall exclude from the transaction price the amount of the part (or parts) of the contract that are initially measured in accordance with other Topics and shall apply paragraphs
    606-10-32-28 through 32-41
    to allocate the amount of the transaction price that remains (if any) to each performance obligation within the scope of this Topic and to any other parts of the contract identified by paragraph 606-10-15-4(b).
  2. b
    If the other Topics do not specify how to separate and/or initially measure one or more parts of the contract, then the entity shall apply the guidance in this Topic to separate and/or initially measure the part (or parts) of the contract.
","snippet":"A contract with a customer may be partially within the scope of this Topic and partially within the scope of other Topics listed in paragraph 606-10-15-2.\n(a) If the other Topics specify how to separate and/or initially …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff197ac28d4327ae500e0cb029887f9f20aae91a91df0de4992c421a7f2d2c53","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},{"citation":"606-10-15-5","para":"15-5","html":"
Subtopic 340-40 on other assets and deferred costs from contracts with customers includes guidance on accounting for the incremental costs of obtaining a contract with a customer and for the costs incurred to fulfill a contract with a customer if those costs are not within the scope of another Topic (see Subtopic 340-40). An entity shall apply that guidance only to the costs incurred that relate to a contract with a customer (or part of that contract) that is within the scope of the guidance in this Topic.
","snippet":"Subtopic 340-40 on other assets and deferred costs from contracts with customers includes guidance on accounting for the incremental costs of obtaining a contract with a customer and for the costs incurred to fulfill a c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:140a7997c6c24e1706457ca58f0de306bbc66c7710cb8c35602558ccb0eaa066","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e28331250c1850b092e21c68eabca3975ee5ad5e548494204c0f2aeb11dd37e","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c882a627b5b1625a21a37c9c1cf311044524949d32a833d5237cb85f2a20c41","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c882a627b5b1625a21a37c9c1cf311044524949d32a833d5237cb85f2a20c41","downloaded_from":"2026-09-09T23:17:57.646Z","last_downloaded_at":"2026-09-09T23:17:57.646Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479959","source_sha256":"c8e36cee090470c89168c5510e40d1f4e99d0bfbdbde8e26a95b62c55a158dd0"}}