ASU 2021-02 — Franchisors—Revenue from Contracts with Customers (Subtopic 952-606): Practical Expedient

The amendments in this Update are intended to reduce the cost and complexity of applying Topic 606, Revenue from Contracts with Customers, to pre-opening services for franchisors that are not public business entities. The amendments in this Update introduce a new practical expedient that simplifies the application of the guidance in Topic 606 about identifying performance obligations.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2020-600—Franchisors—Revenue from Contracts with Customers (Subtopic 952-606): Practical Expedient, which has been deleted.

Issued: January 28, 2021