transaction price

This subtopic tells an investment company how to account for its "other investments" (investments other than debt and equity securities). Such investments are initially measured at transaction price, including commissions and other charges that are part of the purchase transaction, and are subsequently measured at fair value. Its scope mirrors the investment company Overall Subtopic scope in Section 946-10-15.

ASC 606-10 is the general revenue recognition model for contracts with customers: revenue is recognized to depict the transfer of promised goods or services in an amount reflecting the consideration to which the entity expects to be entitled. It is applied through five steps — identify the contract, identify the performance obligations, determine the transaction price, allocate that price to the performance obligations, and recognize revenue as each obligation is satisfied when the customer obtains control (606-10-05-4). It also sets the scope exclusions (leases, insurance, financial instruments, guarantees, certain nonmonetary exchanges), balance sheet presentation of contract assets/liabilities and receivables, and a broad disclosure package.