Deloitte’s Roadmap: Revenue Recognition

Revenue Recognition

This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance in the revenue standard, which was issued in May 2014 by the FASB as ASU 2014-09 (codified primarily in ASC 606) and by the International Accounting Standards Board (IASB®) as IFRS 15.

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Preface On the Radar Contacts Chapter 1 — Overview Chapter 2 — Symbols and Defined Terms Chapter 3 — Objective and Scope Chapter 4 — Step 1: Identify the Contract Chapter 5 — Step 2: Identify the Performance Obligations Chapter 6 — Step 3: Determine the Transaction Price Chapter 7 — Step 4: Allocate the Transaction Price to the Performance Obligations Chapter 8 — Step 5: Determine When to Recognize Revenue Chapter 9 — Contract Modifications Chapter 10 — Principal-Versus-Agent Considerations Chapter 11 — Customer Options for Additional Goods or Services (Material Rights)Chapter 12 — Licensing Chapter 13 — Contract Costs Chapter 14 — Presentation Chapter 15 — Disclosure Chapter 16 — Nonpublic-Entity Elections Chapter 17 — Sales of Nonfinancial Assets Within the Scope of ASC 610-20 Chapter 18 — SEC, FASB, and Other Stakeholder Activities Appendix A — Differences Between U.S. GAAP and IFRS Accounting Standards Appendix B — Codification Example Index Appendix C — Summary of Issues Addressed in the FASB Staff’s Revenue Recognition Implementation Q&As and/or by the TRG Appendix D — Titles of Standards and Other Literature Appendix E — Abbreviations Appendix F — Roadmap Updates for 2022

Since the original release of the revenue standard, the FASB and IASB, along with stakeholders from all industries, have focused on implementation efforts related to the standard’s adoption. In June 2014, a joint FASB/IASB transition resource group (TRG) for revenue recognition was created to discuss implementation issues related to the revenue standard and help the boards resolve any such issues that could give rise to diversity in practice. There have been eight TRG meetings (including two FASB-only TRG meetings), at which 52 staff papers in aggregate were discussed. The feedback the FASB received through these meetings resulted in the issuance of (1) multiple ASUs amending aspects of ASC 606 and related topics in the FASB Accounting Standards Codification and (2) the FASB staff’s Revenue Recognition Implementation Q&As compiled from previously issued educational materials.

In addition, the 16 AICPA revenue recognition industry task forces have produced industry-specific interpretive guidance on the revenue standard. The task forces have developed updates to the AICPA’s industry guides that address over 130 accounting matters related to revenue recognition, presentation, and disclosure.

The SEC staff has been active as well. In addition to monitoring implementation efforts and discussing its expectations for transparent disclosures, the staff has updated its revenue guidance with the issuance of SAB 116, which effectively supersedes SAB Topic 13.

The 2022 edition of this Roadmap includes updated and expanded discussions; new sections and illustrative examples; links to short videos that highlight certain aspects of accounting for revenue; and On the Radar, a section (also available as a stand-alone publication) that briefly summarizes key issues related to the accounting and financial reporting topics addressed in the Roadmap.