Appendix F — Roadmap Updates for 2024 | DART – Deloitte Accounting Research Tool

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Appendix F — Roadmap Updates for 2024

Substantive changes made in the 2024 edition are summarized in the tables below.

New Content

Section	Title	Description
3.2.2.1.1	Health Care Companies With Value-Based Care Arrangements	New section that discusses considerations for determining which, if any, elements of a health care company’s value-based care arrangement are within the scope of ASC 460 or ASC 606. The section includes new Example 3-6A.
3.2.10.1	Customer Litigation Settlements	New section that discusses the accounting for litigation settlements with customers that are partially or entirely within the scope of ASC 606 The section’s two subsections — Sections 3.2.10.1.1 and 3.2.10.1.2 — discuss litigation consideration received from a customer and paid to a customer, respectively.
10.2.3.1	Reseller of SaaS	New section that discusses the accounting for a reseller of SaaS that provides a significant service of integrating a third party’s service into its own services. The section includes new Example 10-5A.
11.12	Expiration of a Material Right	New section that discusses the accounting for the expiration of an option to acquire goods or services that had been identified as a material right.
12.6.5	Conversion of Perpetual Software Licenses to Term-Based Software Licenses	New section that discusses how to account for a contract modification that converts software licenses from perpetual to term-based. The section includes new Example 12-27A.
17.2.4	Transferable Tax Credits	Section added to note that entities that generate transferable tax credits (e.g., as a result of the CHIPS Act or the IRA) should consider the guidance in ASC 610-20 when (1) measuring the consideration they expect to receive in exchange for the transferable tax credits and (2) determining when control of the transferable tax credits is transferred to third parties.
18.3.5	On the Horizon	New section whose subsections discuss FASB standard-setting developments related to (1) derivative scope refinements (Section 18.3.5.1), (2) share-based consideration received from a customer (Section 18.3.5.2), (3) share-based consideration payable to a customer (Section 18.3.5.3), and (4) accounting for government grants (Section 18.3.5.4).
18.6	Tax Legislation	New section that provides cross-references to Deloitte’s Roadmap Income Taxes and other Deloitte publications that readers can consult for (1) a discussion of challenges associated with an entity’s accounting for tax credits available under the CHIPS Act, the IRA, or both, including an entity’s election to account for transferable tax credits under ASC 740 or other guidance; (2) a discussion of how entities that generate such transferable tax credits should consider the guidance in ASC 610-20; and (3) further discussion of the IRA.

Amended or Deleted Content

Section	Title	Description
On the Radar		Updated to (1) add a discussion about payments or incentives provided to a customer that require significant judgment in the application of the guidance on consideration payable to a customer; (2) expand the discussion about the PIR of ASC 606 to reflect recent developments; (3) add a summary of FASB standard-setting developments related to derivative scope refinements and share-based consideration received from a customer, share-based consideration payable to a customer, and accounting for government grants; and (4) remove the video “Trending Topics.”
5.2.3	Immaterial Promises	Expanded the discussion to clarify that if an entity identifies multiple immaterial promised goods or services in a contract with a customer, the entity should consider the materiality of those individually immaterial promised goods or services in the aggregate.
5.3.2.3.2.2	Identifying the Performance Obligations in Co-Branded Credit Card Arrangements	Expanded the discussion to include AICPA interpretive guidance on co-branded credit card arrangements.
5.3.2.3.4	Identifying Performance Obligations in Arrangements That Include Smart Devices, Updates, and Cloud-Based Services	Added a discussion about the potential need for an entity to consider proprietary software embedded in a smart device that has been combined with subscription services when assessing whether the functionality of the combined smart device and subscription services is transformative rather than additive.
6.6.1.2	Identifying Payments Within the Scope of the Requirements Related to Consideration Payable to a Customer	Added (1) Example 6-20A to illustrate an entity’s accounting for cash gift cards provided to a customer’s customers and (2) Example 6-20B to illustrate an entity’s accounting for (a) credits provided to an existing customer for referring a friend under a promotional program and (b) credits provided to the referred new customer.
7.5.3.1.2	Applying the Variable Consideration Allocation Exception to Stand-Ready SaaS Arrangements With Usage-Based Variable Consideration	Added Example 7-23A to illustrate the applicability of the variable consideration allocation exception to stand-ready SaaS arrangements with overage fees and minimums that increase monthly when the minimums are not substantive.
8.5.6	Subsequent Measurement of an Entity’s Measure of Progress	Added Example 8-6A to illustrate two approaches to an entity’s accounting for a change in estimate related to how long a customer is expected to require the entity to stand ready to provide services.
8.7	Repurchase Agreements	Added a cross-reference to Deloitte’s Roadmap Leases to help readers obtain information about evaluating whether an entity’s obligation or right to repurchase an asset should be accounted for as a lease.
9.2.2.2.1	Blend-and-Extend Contract Modifications in the Power and Utilities Industry	Expanded the discussion to explain how a supplier in a specific fact pattern involving a B&E contract modification would account for the modification as a separate contract for additional goods or services in accordance with ASC 606-10-25-12 (“View A”) or as the termination of an existing contract and the creation of a new contract in accordance with ASC 606-10-25-13(a) (“View B”).
11.1	In General	Updated to express Deloitte’s view (supported by discussions quoted from paragraph BC387 of ASU 2014-09 and paragraph 12 of TRG Agenda Paper 6 that compare ASC 606 with legacy revenue guidance) that a discount in a contract with a customer represents a material right under ASC 606 if it is (1) significant and (2) incremental to discounts that would be given to a potential customer (e.g., discounts that are routinely provided as a marketing offer).
12.2.1	Software in a Hosting Arrangement	Added Example 12-1A to illustrate how an entity might evaluate the existence of a significant penalty that would be incurred to take possession of software in a hosting arrangement.
12.6.4.1.2	Alternative 1B — Right of Return Model (Acceptable View)	Updated the discussion about applying the right of return model (“Alternative 1B”) to Example 12-24 to clarify that all consideration in that model is variable.
13.5.1.1	Providing for Anticipated Losses	Updated Example 13-19 to illustrate a type of fact pattern more commonly encountered in current practice.
14.6.1	Contract Assets and Contract Liabilities	Added Example 14-4A to illustrate how contract assets and contract liabilities should be presented net at the contract level but should not be presented net with other contracts.
14.7.6	Interaction Between ASC 606 and SEC Regulation S-X, Rule 5-03(b)	Expanded the discussion to note that the SEC staff has asked registrants about potential inconsistencies between (1) the disaggregation of revenue in the footnotes to the financial statements and (2) the presentation of revenue from products and services on the face of the income statement in accordance with SEC Regulation S-X, Rule 5-03(b).
15.2.4.2	Disclosure of Revenue Recognized From Past Performance	Updated Example 15-1 to clarify how satisfied performance obligations are disclosed in the interim financial statements.
18.5	AICPA Digital Assets Working Group	Added a cross-reference to Deloitte’s June 21, 2022, Accounting Spotlight to help readers obtain information and interpretative guidance on the accounting for nonfungible tokens.

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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.