# ASC 606-10-15: Revenue from Contracts with Customers — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/606/10/#15-scope-and-scope-exceptions) 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): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:0c882a627b5b1625a21a37c9c1cf311044524949d32a833d5237cb85f2a20c41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 606-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/606/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [606-10-15-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:8e00f5997528b7874d6bdab1be2fd10f06c86e2b2d6315ad9a01de3641030103 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Transactions ##### [606-10-15-2](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:c5538807410e384605322df8098b7203e3de087fe256a7a950ea27bc7350c670 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the guidance in this Topic to all [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."), 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. ##### [606-10-15-2A](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-2A) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:29b28379f79309c68642a9653f970f40e9d42f51449e8d9eff1073b496b81311 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [606-10-15-3](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:1a2665dea31cd7dc6daa06e97586c69309af647d6aa27d56cde4da770ab97f79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the guidance in this Topic to a contract (other than a contract listed in paragraph [606-10-15-2](https://asc.understandingaccounting.org/asc/606/10/#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. ##### [606-10-15-3A](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-3A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:250f3e5a7fa0d2bf1176207b20d0fb9f993866470fc46e72621e791f6b251575 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [606-10-65-3](https://asc.understandingaccounting.org/asc/606/10/#606-10-65-3)An entity shall apply the guidance in this Topic, including the guidance on noncash consideration in paragraphs [606-10-32-21 through 32-24](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-21) , 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](https://asc.understandingaccounting.org/asc/606/10/#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. ##### [606-10-15-4](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:ff197ac28d4327ae500e0cb029887f9f20aae91a91df0de4992c421a7f2d2c53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/606/10/#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](https://asc.understandingaccounting.org/glossary/t/#transaction-price "The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.") 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](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-28) to allocate the amount of the transaction price that remains (if any) to each [performance obligation](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") within the scope of this Topic and to any other parts of the contract identified by paragraph [606-10-15-4(b)](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-4). 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. ##### [606-10-15-5](https://asc.understandingaccounting.org/asc/606/10/#606-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.646Z to 2026-09-09T23:17:57.646Z Record version: sha256:140a7997c6c24e1706457ca58f0de306bbc66c7710cb8c35602558ccb0eaa066 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.