{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/606/10/#45-other-presentation-matters","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":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"606-10-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_92BC67FD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><strong class=\"ph b\">When either party to a <a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>contract</span></a> has performed, an entity shall present the contract in the statement of financial position as a <a href=\"/glossary/c/#contract-asset\" class=\"term\" title=\"An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance).\"><span>contract asset</span></a> or a <a href=\"/glossary/c/#contract-liability\" class=\"term\" title=\"An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.\"><span>contract liability</span></a>, depending on the relationship between the entity's performance and the customer's payment. An entity shall present any unconditional rights to consideration separately as a receivable.</strong></span></span></div></div>","snippet":"When either party to a contract has performed, an entity shall present the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity's p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c876d8c507aba6ffeaa3c6c0a9d3d0943db2af3c703efcacebb091a8e97830db","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}},{"citation":"606-10-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_92BC699E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a <a href=\"/glossary/c/#customer\" class=\"term\" title=\"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.\"><span>customer</span></a> pays consideration, or an entity has a right to an amount of consideration that is unconditional (that is, a receivable), before the entity transfers a good or service to the customer, the entity shall present the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is an entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or an amount of consideration is due) from the customer.</span></span></div></div>","snippet":"If a customer pays consideration, or an entity has a right to an amount of consideration that is unconditional (that is, a receivable), before the entity transfers a good or service to the customer, the entity shall pres…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40818388ef05d00ea261e04f0a1ff3f3b380d4752877de86c1128bd999e5d67c","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}},{"citation":"606-10-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_92BC6C71-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an entity performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, the entity shall present the contract as a <a href=\"/glossary/c/#contract-asset\" class=\"term\" title=\"An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance).\"><span>contract asset</span></a>, excluding any amounts presented as a receivable. A contract asset is an entity's right to consideration in exchange for goods or services that the entity has transferred to a customer. An entity shall assess a contract asset for credit losses in accordance with Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a> on financial instruments measured at amortized cost. A credit loss of a contract asset shall be measured, presented, and disclosed in accordance with Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a> (see also paragraph <a href=\"/asc/606/10/#606-10-50-4\" class=\"xref\">606-10-50-4(b)</a>).</span></span></div></div>","snippet":"If an entity performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, the entity shall present the contract as a contract asset, excluding any amounts pres…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd4fafcd662eac5aec54aff32ff9cd15475f5edbc120a72c5980ef0e06c27902","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}},{"citation":"606-10-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_92BC6F46-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A receivable is an entity's right to consideration that is unconditional. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. For example, an entity would recognize a receivable if it has a present right to payment even though that amount may be subject to refund in the future. An entity shall account for a receivable in accordance with Topic <a altsource=\"GUID-848F1C96-68A0-4270-A4CD-D7487E1B0F3B.ditamap\" class=\"ditamap\">310</a> and Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a>. Upon initial recognition of a receivable from a contract with a customer, any difference between the measurement of the receivable in accordance with Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a> and the corresponding amount of <a href=\"/glossary/r/#revenue\" class=\"term\" title=\"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.\"><span>revenue</span></a> recognized shall be presented as a credit loss expense.</span></span></div></div>","snippet":"A receivable is an entity's right to consideration that is unconditional. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. For example, an ent…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9fedf0a0b5d72be308d3ca03c1c61774cc3ff96847d9962f131747db3bfac4ed","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}},{"citation":"606-10-45-5","para":"45-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_92BC7098-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This guidance uses the terms <em class=\"ph i\">contract asset</em> and <em class=\"ph i\">contract liability</em> but does not prohibit an entity from using alternative descriptions in the statement of financial position for those items. If an entity uses an alternative description for a contract asset, the entity shall provide sufficient information for a user of the financial statements to distinguish between receivables and contract assets.</span></span></div></div>","snippet":"This guidance uses the terms contract asset and contract liability but does not prohibit an entity from using alternative descriptions in the statement of financial position for those items. If an entity uses an alternat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e404692de7e0da559c9771944f62ec95fe903d421cefa5597752eaf706d4f62","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56d5ef4dd628866efdc2b708c81bcf40f020992112428aeabbe1689f5a107f31","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0bcdc8cc3b22f612570b3c1f74661d758cf3eba34b8ae23bfb2e2de047276e7","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0bcdc8cc3b22f612570b3c1f74661d758cf3eba34b8ae23bfb2e2de047276e7","downloaded_from":"2026-09-09T23:18:08.759Z","last_downloaded_at":"2026-09-09T23:18:08.759Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479837","source_sha256":"3c277ca701fed902c73486d0589d4a32e3fbcbca7e64ec922351b631fd94d2cb"}}