separately priced extended warranty and product maintenance contracts

Revenue36

1. 605-10Overall605 Revenue Recognition

   ASC 605-10 is the residual "Overall" subtopic of the legacy Revenue Recognition Topic; after ASU 2014-09 substantially all of its recognition guidance was superseded and replaced by Topic 606. What remains is a navigational shell: it states that no revenue recognition guidance is located in Topic 605, points to industry Subtopics that still govern revenue for contracts not with customers within Topic 606's scope, and directs users to the Subtopics containing guidance on provisions for losses on onerous contracts.

2. 605-15Products605 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 Every paragraph in the subtopic — background, scope, recognition, and presentation — has been superseded by ASU 2014-09, which replaced it with the revenue model in ASC 606.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.

3. 605-20Services605 Revenue Recognition

   After ASU 2014-09 gutted most of legacy Topic 605, ASC 605-20 survives only as the guidance on recognizing a loss (onerous-contract provision) on separately priced extended warranty and product maintenance contracts. A separately priced contract is one whose price is not included in the original price of the covered product. If expected costs of providing the services plus any capitalized incremental cost of obtaining the contract exceed the related unearned revenue (contract liability), a loss must be recognized.

4. 605-25Multiple-Element Arrangements605 Revenue Recognition

   ASC 605-25 was the legacy guidance on multiple-element (multiple-deliverable) revenue arrangements — how a vendor decided whether deliverables in one contract were separate units of accounting and how to allocate arrangement consideration among them. Every paragraph of the subtopic has been superseded, principally by ASU 2014-09 (Revenue from Contracts with Customers), with a few earlier paragraphs superseded by ASU 2009-13. There is therefore no operative guidance left in 605-25; entities apply ASC 606 (and ASC 340-40) instead.

5. 605-28Milestone Method605 Revenue Recognition

   ASC 605-28 formerly provided the "milestone method" of revenue recognition, an accounting policy election that allowed a vendor in a research-and-development arrangement to recognize contingent milestone consideration in its entirety in the period the milestone was achieved, if the milestone was deemed substantive. Every paragraph of this subtopic — scope, recognition, disclosure, and transition — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Milestone-type contingent consideration is now accounted for as variable consideration under ASC 606, subject to the constraint on variable consideration.

6. 605-30Rights to Use605 Revenue Recognition

   ASC 605-30 was the legacy revenue recognition guidance for "Rights to Use" arrangements (transfers of rights to use property rather than sales of the property itself). Its substantive paragraphs — 605-30-05-1 (overview) and 605-30-25-1 (recognition) — were superseded by ASU 2014-09, so the subtopic is now an empty shell. Arrangements formerly analyzed here are accounted for under ASC 606 (or ASC 842 if the arrangement conveys a lease).

7. 605-35Construction-Type and Production-Type Contracts605 Revenue Recognition

   After ASU 2014-09 superseded the old percentage-of-completion/completed-contract revenue guidance, ASC 605-35 survives only as the loss-provision guidance for construction-type and production-type contracts — contracts built to a customer's specifications. Its core rule is that when current estimates of the consideration expected (measured under Topic 606's transaction price principles, without the variable consideration constraint, and adjusted for customer credit risk) fall below estimated contract costs, the entire anticipated loss is recognized immediately in the period it becomes evident. The subtopic also specifies whether the loss is measured at the contract, combined-contract, or performance obligation level, and how the provision is presented in the income statement and balance sheet.

8. 605-40Gains and Losses605 Revenue Recognition

   ASC 605-40 formerly addressed gains and losses arising from involuntary conversions of nonmonetary assets (such as property destroyed by fire or taken by condemnation) into monetary assets like insurance or condemnation proceeds. Every paragraph in the subtopic — scope, recognition, measurement, presentation, and relationships — was superseded by ASU 2014-09 (the revenue recognition standard), so the subtopic contains no remaining authoritative guidance. Entities now look to ASC 610-30 for gains and losses on involuntary conversions and to ASC 606 for revenue from contracts with customers.

9. 605-45Principal Agent Considerations605 Revenue Recognition

   ASC 605-45 formerly governed whether a company reports revenue gross (as a principal) or net (as an agent), including guidance on shipping and handling costs and reimbursed out-of-pocket expenses. Every paragraph in the subtopic (Sections 05, 15, 45, 50, and 55) has been superseded by ASU No. 2014-09, so the subtopic contains no operative guidance. Gross-versus-net presentation is now determined under the principal-versus-agent (control) guidance in ASC 606-10-55-36 through 55-40.

10. 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.

11. 605-905Agriculture605 Revenue Recognition

    ASC 605-905 provides industry-specific revenue recognition guidance for agricultural entities, with separate General and Cooperatives Subsections. It requires government income replacement and subsidy payments (deficiency, disaster, and other program payments) to be recorded as additional income when the amount of and right to receive the payment can be reasonably determined (605-905-25-1). For agricultural cooperatives it describes accepted methods of allocating overall, departmental, and functional losses among patrons, equities, and unallocated retained earnings, and distinguishes patronage from nonpatronage earnings (605-905-45-1). Most of the customer-revenue paragraphs were superseded by ASU 2014-09.

12. 605-908Airlines605 Revenue Recognition

    ASC 605-908 was the legacy industry-specific revenue recognition guidance for airlines (passenger ticket sales, frequent flyer/mileage programs, and related items). Every paragraph in Sections 05, 15, and 25 has been superseded by Accounting Standards Update No. 2014-09, so the subtopic contains no operative guidance. Airline revenue is now accounted for under ASC 606 (with airline-specific implementation guidance in ASC 606-10-55 and Subtopic 908-606).

13. 605-910Contractors—Construction605 Revenue Recognition

    ASC 605-910 was the construction-contractor revenue guidance nested in the legacy revenue recognition topic (ASC 605). Every substantive paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers), leaving the subtopic as an empty shell. Construction contractors now apply ASC 606 for revenue and ASC 340-40 for contract costs.

14. 605-912Contractors—Federal Government605 Revenue Recognition

    ASC 605-912 was the legacy industry guidance on revenue recognition for contractors with the U.S. federal government, covering matters such as recognition of fees, contract terminations, renegotiation and price redetermination. Every paragraph in the subtopic (Sections 05, 15, 25, and 50) was superseded by ASU 2014-09, so the subtopic contains no remaining substantive guidance. Federal government contractors now apply ASC 606 (with related guidance in ASC 340-40) and, if applicable, the residual industry guidance in ASC 912.

15. 605-915Development Stage Entities605 Revenue Recognition

    ASC 605-915 formerly provided revenue recognition guidance specific to development stage entities (pre-revenue enterprises devoting efforts to establishing a new business). Every remaining paragraph in this subtopic (05-1, 15-1, 25-1) was superseded by ASU 2014-10, which eliminated the concept of a "development stage entity" from U.S. GAAP. As a result, there is no separate revenue guidance for such entities; they apply the same revenue recognition standards as any other entity.

16. 605-920Entertainment—Broadcasters605 Revenue Recognition

    ASC 605-920 formerly provided industry-specific revenue recognition guidance for broadcasters (entertainment industry), including recognition of barter and license/advertising revenue. All of its substantive paragraphs (605-920-05-1 and 605-920-25-1) were superseded by ASU 2014-09, so the subtopic is now an empty shell. Broadcaster revenue is instead accounted for under the general revenue model in ASC 606, with related industry guidance in ASC 926.

17. 605-922Entertainment—Cable Television605 Revenue Recognition

    ASC 605-922 formerly contained industry-specific revenue recognition guidance for cable television entities (e.g., accounting for installation and hookup revenue and initial subscriber fees). Every paragraph in the subtopic — scope, background, and recognition — was superseded by ASU 2014-09, the revenue recognition standard. Cable television revenue is now accounted for under ASC 606, with related industry guidance in ASC 922 and contract cost guidance in ASC 340-40.

18. 605-924Entertainment—Casinos605 Revenue Recognition

    ASC 605-924 formerly contained the industry-specific revenue recognition guidance for casinos (gaming revenue, casino jackpot liabilities, and related presentation). Every substantive paragraph has been superseded by ASU 2014-09, so the subtopic carries no remaining guidance. Casino revenue is now accounted for under ASC 606, with any surviving industry considerations in ASC 924 and ASC 606-10-55.

19. 605-926Entertainment—Films605 Revenue Recognition

    ASC 605-926 formerly contained the industry-specific revenue recognition guidance for entertainment—films (licensing of films to theaters, television, home video, and other markets). Every paragraph in the subtopic — scope, recognition, disclosure, and implementation guidance — was superseded by ASU 2014-09 (the revenue standard). Film revenue is now accounted for under ASC 606, with related industry guidance retained in ASC 926-605 and other 926 subtopics.

20. 605-928Entertainment—Music605 Revenue Recognition

    ASC 605-928 formerly provided industry-specific revenue recognition guidance for the music industry (licensors of music rights, record masters, and related fees). Every paragraph in the subtopic — scope, recognition, initial measurement, and relationships sections — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Entities now account for music-industry revenue under ASC 606 and, for licensing arrangements, ASC 606-10-55-54 through 55-65, with residual industry guidance in ASC 928.

21. 605-932Extractive Activities—Oil and Gas605 Revenue Recognition

    ASC 605-932 was the oil and gas industry-specific guidance under the legacy revenue recognition model (ASC 605), addressing revenue recognition for extractive activities such as gas balancing arrangements. Every substantive paragraph in the subtopic (05-1, 15-1, 25-2, and 50-1) was superseded by ASU 2014-09, so the subtopic now contains no operative guidance. Oil and gas revenue is instead accounted for under ASC 606, with industry-specific application guidance in ASC 932-606.

22. 605-940Financial Services—Brokers and Dealers605 Revenue Recognition

    ASC 605-940 formerly provided industry-specific revenue recognition guidance for brokers and dealers in securities (e.g., trade-date recognition of commissions and related expenses, and measurement of such revenues). Every paragraph in the subtopic — Sections 05, 15, 25 and 30 — was superseded by ASU 2014-09, so the subtopic contains no remaining operative guidance. Broker-dealer revenue from contracts with customers is now accounted for under ASC 606, with related industry implementation guidance in ASC 940-605.

23. 605-942Financial Services—Depository and Lending605 Revenue Recognition

    ASC 605-942 was the industry-specific revenue recognition guidance for depository and lending institutions (financial services) under the legacy ASC 605 model. Every paragraph in its Overview (05), Scope (15), and Recognition (25) sections was superseded by ASU 2014-09, so the subtopic contains no operative guidance. Revenue from contracts with customers for banks and lenders is now addressed under ASC 606 (with financial-instrument-related income remaining in ASC 310, 320, 815, 825, 942, etc.).

24. 605-944Financial Services—Insurance605 Revenue Recognition

    ASC 944-605 governs when and how insurance entities recognize premium revenue, split into short-duration, long-duration, reinsurance, and financial guarantee subsections. Short-duration premiums are earned over the contract (or risk) period in proportion to insurance protection provided; long-duration premiums are recognized when due from policyholders; universal life-type contract revenue is limited to amounts assessed against policyholders, with front-end fees deferred as unearned revenue. Reinsurance sections address prepaid reinsurance premiums, deferral and amortization of retroactive reinsurance gains, and the open year versus periodic method for foreign reinsurance.

25. 605-946Financial Services—Investment Companies605 Revenue Recognition

    ASC 605-946 was the legacy revenue recognition guidance for investment company activities (notably investment advisers' incentive/performance-based fee arrangements) under the superseded Topic 605 model. Every paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic now contains no operative guidance; revenue from such contracts is accounted for under ASC 606 (with related costs under ASC 340-40).

26. 605-948Financial Services—Mortgage Banking605 Revenue Recognition

    ASC 605-948 formerly provided revenue recognition guidance for mortgage banking activities (notably loan servicing fees and related mortgage banking revenues) under the legacy ASC 605 model. Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance today; mortgage banking revenue is addressed under ASC 606 and the specialized guidance retained in ASC 948.

27. 605-952Franchisors605 Revenue Recognition

    ASC 605-952 formerly contained the industry-specific revenue recognition guidance for franchisors (initial franchise fees, area franchise sales, continuing fees, and related disclosures). Every paragraph in the subtopic — Sections 05, 15, 25, 35, 40, 45, and 50 — has been superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now apply ASC 606 (with ASC 340-40 for contract costs), including the franchisor-specific implementation guidance and, for private companies, the practical expedient added by ASU 2021-02.

28. 605-954Health Care Entities605 Revenue Recognition

    After ASU 2014-09 superseded most of its content, ASC 605-954 retains only two pieces of health care recognition guidance: charity care and distributions from financially interrelated fundraising (recipient) entities. Charity care is never recognized as revenue, and distributions from a related fundraising foundation are generally a reduction of the health care entity's interest in that recipient entity rather than contribution revenue. Revenue from contracts with patients and other customers is now governed by Topic 606.

29. 605-958Not-for-Profit Entities605 Revenue Recognition

    ASC 958-605 governs revenue recognition by not-for-profit entities, principally contributions received. Its core rules are (1) distinguishing contributions (no commensurate value to the resource provider) from exchange transactions accounted for under Topic 606, (2) recognizing unconditional contributions as revenue or gains at fair value when received while conditional contributions (a barrier plus a right of return/release) are deferred as refundable advances until the barrier is substantially met, and (3) classifying contributions as with or without donor restrictions. It also covers agency-type transfers where an NFP recipient acts as intermediary, agent, or trustee for a donor and a specified third-party beneficiary.

30. 605-970Real Estate—General605 Revenue Recognition

    ASC 605-970 formerly provided the legacy revenue recognition guidance for real estate—general transactions (including profit recognition and measurement on real estate sales). Every paragraph in the subtopic — Sections 05, 15, 25, 30, 35, and 55 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). No substantive guidance remains; entities apply ASC 606 (and ASC 610-20 for sales of nonfinancial assets to noncustomers) instead.

31. 605-972Real Estate—Common Interest Realty Associations605 Revenue Recognition

    ASC 605-972 formerly provided revenue recognition guidance for common interest realty associations (CIRAs), such as condominium and homeowners' associations, addressing assessments from members. Every paragraph in the subtopic — scope, recognition, presentation, and disclosure — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). CIRA revenue transactions are now evaluated under ASC 606, with any surviving industry guidance located in ASC 606-10 or ASC 972.

32. 605-974Real Estate—Real Estate Investment Trusts605 Revenue Recognition

    ASC 605-974 formerly provided industry-specific revenue recognition guidance for real estate investment trusts under the legacy ASC 605 revenue model. Every paragraph in the subtopic (Sections 05, 15, 25, 45, and 50) was superseded by ASU 2014-09, the revenue standard. REIT revenue transactions are now accounted for under ASC 606 (contracts with customers) or, for rental income, under the leases guidance in ASC 842.

33. 605-976Real Estate—Retail Land605 Revenue Recognition

    ASC 605-976 formerly contained the industry-specific revenue recognition guidance for retail land sales (sales of lots in subdivided developments, typically on installment contracts with refund/cancellation periods), including the percentage-of-completion and installment methods for such sales. Every paragraph in the subtopic — Sections 05, 15, 25, 30, 35, and 55 — was superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no remaining operative guidance; retail land sales are now accounted for under ASC 606 (and ASC 610-20 for sales of nonfinancial assets to noncustomers).

34. 605-978Real Estate—Time-Sharing Activities605 Revenue Recognition

    ASC 605-978 formerly contained the specialized revenue recognition guidance for real estate time-sharing transactions (interval sales, vacation clubs), including profit recognition tests, buyer's commitment and continuing investment thresholds, relative sales value accounting, and reload/upgrade transactions. Every paragraph in every section of the subtopic was superseded by Accounting Standards Update No. 2014-09. Time-sharing revenue is now accounted for under ASC 606, with transfers of real estate outside a customer contract addressed in ASC 610-20.

35. 605-980Regulated Operations605 Revenue Recognition

    ASC 605-980 is the surviving remnant of the old revenue standard for entities with regulated operations (and nonutility generators), governing recognition of revenue from "alternative revenue programs" — regulator-authorized adjustments to future billings for past events. Type A programs adjust billings for weather abnormalities, broad external factors, or demand-side management; Type B programs award incentives for achieving objectives such as cost reduction or improved service. Revenue is recognized once the triggering events are complete if the program arises from a regulatory order allowing automatic rate adjustment, the amount is objectively determinable and probable of recovery, and collection occurs within 24 months after the end of the annual period of recognition (605-980-25-4).

36. 605-985Software605 Revenue Recognition

    After ASU 2014-09 gutted nearly all of its content, ASC 605-985 survives only to address recognizing a provision for losses on contracts to deliver software or a software system (alone or with other products and services) that require significant production, modification, or customization of software. It expressly provides no revenue recognition guidance; revenue for such arrangements is accounted for under Topic 606, with the loss provision guidance in Subtopic 605-35. If it becomes probable that the transaction price allocated to an unsatisfied or partially unsatisfied performance obligation will produce a loss, that loss is recognized under Topic 450.