product revenue recognition

ASC 605-15 was the legacy guidance on revenue recognition for sales of product, most notably sales with a right of return (and related product financing and industry arrangements). Every paragraph in the subtopic — background, scope, recognition, and presentation — has been superseded by ASU 2014-09, which replaced it with the revenue model in ASC 606. As a result, the subtopic contains no operative guidance today and exists only as a historical marker.

This Subtopic governs how film production and distribution entities account for costs of manufacturing or duplicating products held for sale, such as videocassettes and digital video discs. Manufacturing/duplication costs are charged to expense on a unit-specific basis when the related product revenue is recognized (705-926-25-1). The cost of theatrical film prints is instead expensed over the period benefited (705-926-25-2).