reduction of revenue versus expense

Revenue1

1. 605-50Customer Payments and Incentives605 Revenue Recognition

   ASC 605-50 was the legacy guidance on a vendor's accounting for consideration given to a customer or a reseller of the vendor's products (cash, credits, coupons, slotting fees, rebates, and similar sales incentives), including whether such consideration is a reduction of revenue or an expense and when to recognize it. Every paragraph in the subtopic — Sections 05, 15, 25, 45, 50, 55, and 60 — has been superseded by ASU 2014-09 (Revenue from Contracts with Customers). No operative guidance remains here; the topic is retained only as a historical marker for entities referencing pre-ASC 606 literature.