transition to asc 606

ASC 340-20 formerly governed capitalized advertising costs (including direct-response advertising) — when such costs could be recorded as assets, how they were measured, amortized, tested for realizability, presented, and disclosed. Every paragraph in the subtopic (Sections 05, 15, 25, 30, 35, 45, 50, 55, and 60) has been superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; advertising costs are now expensed as incurred (or the first time the advertising takes place) under ASC 720-35, and contract-related costs are addressed by ASC 340-40.

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 Every substantive paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers), leaving the subtopic as an empty shell.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.

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 Every paragraph in the subtopic (Sections 05, 15, 25, and 50) was superseded by ASU 2014-09, so the subtopic contains no remaining substantive guidance.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.

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 Every paragraph in the subtopic — scope, background, and recognition — was superseded by ASU 2014-09, the revenue recognition standard.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.

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 Every paragraph in the subtopic — scope, recognition, disclosure, and implementation guidance — was superseded by ASU 2014-09 (the revenue standard).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.

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.).

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.

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.

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.

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.

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).