ASC 845-985
Software
845 Nonmonetary Transactions
Source downloaded: .Record version 811e6c224ec5. Effective date must be checked in the source.
ASC 845-985 formerly provided industry guidance on nonmonetary (barter) exchanges involving software, principally software revenue recognition in exchanges of software products or licenses. Every paragraph in this subtopic — scope, recognition, and implementation guidance — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; nonmonetary consideration in software arrangements is now addressed under ASC 606 (noncash consideration) and general nonmonetary guidance in ASC 845-10.
Key points (5)
- All content of 845-985 (paragraphs 845-985-05-1, 15-1 through 15-2, 25-1 through 25-7, and 55-1 through 55-8) is marked 'Paragraph superseded by Accounting Standards Update No. 2014-09,' leaving no effective guidance in the subtopic.
- Because the legacy software-specific nonmonetary exchange guidance was withdrawn, entities apply ASC 606 to revenue arrangements settled in noncash consideration, measuring such consideration at fair value under 606-10-32-21 through 32-24.
- General nonmonetary exchange principles (fair value measurement, commercial substance exception) remain in ASC 845-10; the software carve-out no longer exists.
- The superseded status is a transition artifact: entities that had not yet adopted ASU 2014-09 previously looked here, but for all current periods the guidance is inoperative.
- Related legacy software revenue guidance in ASC 985-605 was likewise superseded by ASU 2014-09, so no residual software-specific barter model survives.
For students. Know that this subtopic is entirely superseded by ASU 2014-09 — citing it as live authority is the classic error; software barter transactions now fall under ASC 606's noncash consideration rules and ASC 845-10's general nonmonetary principles.
Machine-generated study aid for ASC 845-985. Check the source paragraphs below.
845-985-00Status
Source downloaded: .Record version 880c431ed236. Effective date must be checked in the source.
| Paragraph | Action | Accounting Standards Update | Date |
| Customer | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 985-845-05-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 985-845-15-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| 985-845-15-2 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
| Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 | |
| Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |
845-985-05Overview and Background
Source downloaded: .Record version 94a5533e2bf6. Effective date must be checked in the source.
845-985-15Scope and Scope Exceptions
Source downloaded: .Record version 6eafbd3b0040. Effective date must be checked in the source.
845-985-20Glossary
Source downloaded: .Record version bf80daccfc71. Effective date must be checked in the source.
845-985-25Recognition
Source downloaded: .Record version cc7f7b755f22. Effective date must be checked in the source.
845-985-55Implementation Guidance and Illustrations
Source downloaded: .Record version c15fbb74a11e. Effective date must be checked in the source.