1.3 Scope (Chapter 3 of the Roadmap)

The standard’s revenue guidance applies to all contracts with customers as defined by the standard (see Chapter 2 for definitions of terms included in the standard’s glossary) except those that are within the scope of other topics in the Codification. The guidance does not apply to contracts within the scope of ASC 842 (leases) and ASC 944 (financial services — insurance); contractual rights or obligations within the scope of ASC 310, ASC 320, ASC 321, ASC 323, ASC 325, ASC 405, ASC 470, ASC 815, ASC 825, and ASC 860 (primarily various types of financial instruments); contracts within the scope of ASC 460 (guarantees other than product or service warranties); and ASC 845 (nonmonetary exchanges between entities in the same line of business to facilitate a sale to another party).

Certain provisions of the standard’s revenue guidance also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales to noncustomers of (1) property, plant, and equipment; (2) real estate; or (3) intangible assets). Such provisions include guidance on recognition (including determining the existence of a contract and control principles) and measurement. See Chapter 17.

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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.