Appendix F — Roadmap Updates for 2025 | DART – Deloitte Accounting Research Tool

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Appendix F — Roadmap Updates for 2025

Substantive changes made in the 2025 edition are summarized in the tables below.

New Content

Section	Title	Description
3.2.10.2	Revenue Contracts Entered Into in Conjunction With a Business Combination (Disposition)	New section that discusses considerations related to the allocation of consideration when revenue contracts are entered into in close proximity to, or simultaneously with, a business combination (disposition).
6.5.3	Noncash Settlement Denominated in Cash	New section that discusses the difference between noncash consideration and noncash payments denominated in a specified amount of cash. The section includes new Example 6-17A.
6.6.2.6	Share-Based Consideration Payable to a Customer	New section that discusses the application of the guidance on accounting for share-based consideration payable to a customer as clarified by ASU 2025-04. The section includes new Example 6-28A.
11.2.4	MSAs With Discounted or Free Goods	New section that discusses when a material right may exist in an MSA that provides for discounted or free goods or services. This section includes new Example 11-2A.
14.4.1	Contract Asset Impairment	New section that discusses impairment considerations related to contract assets that will be settled in noncash payments.
18.3.3.15	ASU 2025-04 on Share-Based Consideration Payable to a Customer	New section that discusses the FASB’s issuance of ASU 2025-04, which clarifies the guidance in both ASC 606 and ASC 718 on the accounting for share-based payment awards that an entity grants as consideration payable to a customer of the entity.
18.3.3.16	ASU 2025-07 on Derivative Scope Refinements and Share-Based Noncash Consideration From a Customer	New section that discusses the FASB’s issuance of ASU 2025-07, which (1) addresses challenges associated with applying the definition of a derivative and the derivative scope exception to arrangements with contingent features in accordance with ASC 815 and (2) reduces diversity in the accounting for share-based noncash consideration received from a customer in accordance with ASC 606.
18.3.5.2	Accounting for Environmental Credits by Business Entity	New section that discusses the FASB's (1) December 2024 proposed ASU that would provide a wholesale framework for accounting for environmental credits and related liabilities and (2) August 2025 redeliberation on the proposed ASU.

Amended or Deleted Content

Section	Title	Description
On the Radar		Updated to (1) add the recognition and measurement of noncash consideration as a trending SEC comment letter topic; (2) reflect the issuance of the FASB’s PIR report and completion of the PIR process; and (3) highlight the FASB’s recent standard-setting activities 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.
3.2.10	Contracts That Include Both Revenue and Nonrevenue Elements	Updated to highlight that in certain scenarios involving a contract that includes both revenue and nonrevenue elements, it is possible that no amount of the consideration will be allocated to the performance obligations within the scope of ASC 606.
5.2.4.3	Shipping and Handling Activities	Updated to clarify that the practical expedient allowing an entity to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities is not applicable by analogy to other activities.
5.3.2.3.2.2	Identifying the Performance Obligations in Co-Branded Credit Card Arrangements	Updated to discuss considerations for determining whether a promise to provide rewards in a co-branded credit card arrangement that can be redeemed for goods and services provided by third parties represents a performance obligation or consideration payable to a customer.
5.3.3.1	Determining Whether Distinct Goods or Services Are Substantially the Same	Added a decision tree to illustrate how the nature of the promised goods or services affects whether the series guidance in ASC 606-10-25-14(b) applies.
5.3.3.2	Mandatory Treatment of a Series of Distinct Goods or Services as a Single Performance Obligation	Added Connecting the Dots about the application of variable consideration and contract modification guidance when a series of distinct goods or services is accounted for as a single performance obligation.
5.4.3.1	Assessing Whether a Promise Is a Stand-Ready Performance Obligation	Updated to (1) clarify that an entity should not conclude by default that a promise to provide an unknown type or quantity of goods or services is a stand-ready obligation and (2) note that entities may encounter situations in which judgment is required to determine whether the nature of the promise in a contract is a stand-ready obligation or a stand-ready element.
5.4.3.2.1	Determining Whether a SaaS Arrangement Represents a Stand-Ready Obligation or an Obligation to Provide a Specified Amount of Services	Added Examples 5-11A and 5-11B to illustrate how to determine whether the nature of an entity’s promise in a SaaS arrangement is (1) to provide a specified amount of services or (2) to stand ready to provide a service.
5.5.4	Warranties Within the Scope of Other Guidance (Assurance-Type Warranties)	Updated to clarify that in limited instances, payments to customers may be related to warranty obligations.
5.6	Nonrefundable Up-Front Fees	Added Examples 5-15A and 5-15B to further illustrate how an entity would determine that a nonrefundable up-front fee (1) provides a material right or (2) does not provide a material right.
6.6	Consideration Payable to a Customer	Amended the decision tree to incorporate a decision regarding whether consideration payable to a customer exceeds the fair value of the distinct good or service received from the customer.
6.6.2.2	Consideration Payable to a Customer and Variable Consideration	Added Examples 6-20C and 6-20D to illustrate how an entity that provides cryptocurrency to its customers would apply the guidance on consideration payable to a customer and the guidance on variable consideration.
7.4	Allocation of a Discount	Updated to clarify that the exception in ASC 606-10-32-37 for allocating a discount to one or more, but not all, distinct goods or services in a contract if certain criteria are met cannot be used to allocate only a portion of the discount to one or more, but not all, performance obligations in the contract.
8.7.1	Forward or Call Option	Updated to add (1) a discussion noting that the repurchase guidance in ASC 606-10-55-68 through 55-71 should be applied solely to the relevant assets rather than at the performance obligation level and (2) Example 8-16A to illustrate why an entity’s right to reacquire a license of IP that is transferred to a customer would typically be an attribute of the license and should not cause the licensed IP to be subject to the leasing guidance in ASC 842.
9.2.2	Contract Modification Not Accounted for as a Separate Contract	Added (1) a discussion of two alternative approaches to accounting for contract modifications under ASC 606-10-25-13(c), and (2) Example 9-1A to illustrate the application of each of these approaches.
10.2.2	Controlling the Right to a Service	Added Examples 10-3A, 10-3B, and 10-3C to illustrate the application of the principal-versus-agent guidance to the provision of services.
10.2.4	Indicators That an Entity Is Acting as a Principal	Expanded the discussion to emphasize that an entity cannot make a policy election to account for transactions on a gross or net basis and should carefully analyze the particular facts and circumstances to determine whether it is acting as a principal or as an agent.
10.2.4.2	Inventory Risk	Updated to note that general economic risk is not the same as inventory risk and is not an indicator of control of a good or service before it is transferred to the customer.
10.4.1	Illustrative Examples of Contracts in Which an Entity Is Both a Principal and an Agent	Added Example 10-9A to illustrate principal-versus-agent considerations for a reseller entity that is both a principal and an agent.
10.5.8	Estimating Gross Revenue as a Principal	Added Example 10-14 to illustrate how the principal in a SaaS reseller arrangement should determine the transaction price when there is uncertainty about the amount that the intermediary charges the customer.
11.2.2	Loyalty Programs and Accumulation Features	Updated to clarify that a material right would typically not exist when an entity is not a principal in providing the goods or services for which loyalty points are redeemed.
11.10	Recognition of Revenue Related to Options That Do Not Expire	Updated Example 11-8 to clarify that (1) the entity's subsequent estimate of loyalty points to be redeemed may not be the same as the initial estimate of loyalty points that will be redeemed (for the purposes of determining stand-along selling price of the material rights related to the points issuance) and (2) the entity would not change amounts allocated to the material right obligation for subsequent changes in the estimate of loyalty points to be redeemed.
17.2	Scope of ASC 610-20	Expanded the discussion to explain how an entity may sometimes enter into a contract with a counterparty that is both a customer under ASC 606 and the purchaser of one or more nonfinancial assets within the scope of ASC 610-20.
17.4.2	Gain or Loss Measurement	Expanded the discussion to explain that even when an entity does not receive any additional direct ownership interest in an equity method investee in connection with transferring a nonfinancial asset or in-substance nonfinancial asset to the investee, the value of the entity’s claim on the investee’s net assets (and the corresponding fair value of the entity’s investment) may increase as a result of the exchange transaction. Added Example 17-2A to illustrate circumstances in which an entity transfers a nonfinancial asset to an equity method investee (without receiving any additional direct ownership interest) and accounts for the change in the fair value of the equity method investment resulting from the net exchange as an adjustment to the transaction price.
18.3.4	Postimplementation Review	Updated to discuss the PIR report that the FASB issued after completing its PIR of the revenue standard.
18.3.5.1	Accounting for Government Grants	Renumbered from Section 18.3.5.4 and updated to discuss the FASB’s (1) November 2024 proposed ASU that would add guidance to ASC 832 on the recognition, measurement, and presentation of government grants and (2) June 2025 redeliberation on the proposed ASU.
18.3.5.1	Derivative Scope Refinements	Deleted.
18.3.5.2	Share-Based Consideration Received From a Customer	Deleted.
18.3.5.3	Share-Based Consideration Payable to a Customer	Deleted.
18.3.5.4	Accounting for Government Grants	Renumbered to Section 18.3.5.1 and updated (see corresponding row).
18.6	Tax Legislation	Added discussion of (1) the acceptable methods for recognizing and measuring transferable tax credits, and (2) when control of the credits may be transferred to the purchaser.
Appendix A	Differences Between U.S. GAAP and IFRS Standards	Updated the discussion of the guidance on share-based payments to customers under U.S. GAAP to reflect the issuance of ASU 2025-04, which clarifies that guidance.

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