> ## Documentation Index
> Fetch the complete documentation index at: https://library.thepocketca.com/llms.txt
> Use this file to discover all available pages before exploring further.

# ASC 606

> Revenue from Contracts with Customers in a structured, generated reference format.

export default function StandardStatus({status = 'Current'}) {
  const palette = {
    Current: {
      background: '#E8F7F4',
      color: '#175D51',
      border: '#B9E3DB'
    },
    Amended: {
      background: '#FFF4E5',
      color: '#8A5400',
      border: '#F1D5A6'
    },
    Superseded: {
      background: '#F6F1F1',
      color: '#6A4D4D',
      border: '#DDCACA'
    }
  };
  const tone = palette[status] || palette.Current;
  return <span style={{
    display: 'inline-flex',
    alignItems: 'center',
    padding: '0.28rem 0.72rem',
    borderRadius: '999px',
    fontSize: '0.85rem',
    fontWeight: 700,
    letterSpacing: '0.01em',
    background: tone.background,
    color: tone.color,
    border: `1px solid ${tone.border}`
  }}>
      {status}
    </span>;
}

<StandardStatus status="Current" />

## At a glance

* `ASC 606` is the core US GAAP revenue-recognition model for contracts with customers.
* It uses a five-step structure similar to `IFRS 15`.
* Practical work often turns on contract identification, performance obligations, variable consideration, and disclosure.

## In plain language

`ASC 606` is the main US GAAP answer to the question, "When should you book revenue from a customer contract?"
It asks you to work through the contract carefully rather than relying on invoice timing or legacy industry habits.

## Who this applies to

`ASC 606` applies to entities that recognize revenue from customer contracts, subject to scope exceptions such as leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges.

## Core principles

1. Identify the contract.
2. Identify the performance obligations.
3. Determine the transaction price.
4. Allocate the transaction price.
5. Recognize revenue when, or as, obligations are satisfied.

## Recognition, measurement, presentation, and disclosure

### Recognition

Revenue is recognized when control of the promised good or service transfers.
That can happen over time or at a point in time, depending on the fact pattern.

### Measurement

Transaction price analysis covers variable consideration, financing components, non-cash consideration, and consideration payable to a customer.
Judgment and constraint analysis matter because overstated revenue can unwind later.

### Presentation

The codification distinguishes receivables, contract assets, and contract liabilities so the statement presentation reflects the nature of the right or obligation.

### Disclosure

Disclosure is intended to explain the nature, timing, and uncertainty of revenue and cash flows from contracts with customers.

## Effective date and transition

`ASC 606` is effective for public business entities for annual reporting periods beginning after `2017-12-15`, with later effective dates for certain nonpublic entities.
Transition can be full retrospective or modified retrospective, depending on the reporting choice made.

## Amendments and status

This page is the current canonical page for `ASC 606`.
It replaced much of the fragmented legacy revenue guidance that previously sat in `ASC 605`.

## Related standards

<RelatedStandardLink href="/accounting/ifrs/ifrs-15" code="IFRS 15" title="Revenue from Contracts with Customers" note="Closest IFRS counterpart to the US GAAP revenue model." />

<RelatedStandardLink href="/accounting/uk-gaap/frs-102" code="FRS 102" title="The Financial Reporting Standard applicable in the UK and Republic of Ireland" note="Useful when you need to compare US GAAP revenue analysis with UK GAAP treatment." />

## Source references

<SourceReference document="ASC 606 Revenue from Contracts with Customers" paragraphs="606-10-25-1 through 25-8" note="Contract identification and the core recognition model." />

<SourceReference document="ASC 606 Revenue from Contracts with Customers" paragraphs="606-10-32-2 through 32-27" note="Transaction price, variable consideration, and allocation mechanics." />

<SourceReference document="ASC 606 Revenue from Contracts with Customers" paragraphs="606-10-50-5 through 50-21" note="Disclosure objectives and required revenue disclosures." />