FASB Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers (Topic 606).
For a full list of final ASUs issued by the FASB to amend and clarify the guidance in ASU 2014-09, see Section 19.2.2 of Deloitte’s A Roadmap to Applying the New Revenue Recognition Standard. The guidance in ASU 2014-09, as amended, is codified primarily in FASB Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers, and Subtopic 340-40, Other Assets and Deferred Costs — Contracts With Customers.
FASB Accounting Standards Codification Subtopic 605-25, Revenue Recognition — Multiple-Element Arrangements.
ASC 605-25-25-5 provides that for a delivered item in an arrangement with multiple deliverables to be a separate unit of accounting, (1) the item must have stand-alone value and (2) “[i]f the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items [must be] considered probable and substantially in the control of the vendor.”
As noted in paragraph BC125 of ASU 2014-09, typical service contracts create an asset only momentarily since the asset is simultaneously received and consumed by the customer.
Quoted from paragraph BC100 of ASU 2014-09.
Quoted from paragraph BC103 of ASU 2014-09.
ASC 606-10-55-150A through 55-150D.