transaction price without variable consideration constraint

Revenue1

1. 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   After ASU 2014-09 superseded the old percentage-of-completion/completed-contract revenue guidance, ASC 605-35 survives only as the loss-provision guidance for construction-type and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.