superseded legacy guidance

Revenue1

1. 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.