For public entities, the new revenue standard (ASC 6061) became effective for annual reporting periods beginning after December 15, 2017. The standard is effective for all other entities for annual reporting periods beginning after December 15, 2018. Early adoption is permitted for annual reporting periods beginning after December 15, 2016.
For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
However, in determining whether a stated penalty is substantive, an entity may consider both quantitative and qualitative factors.
TRG Memo No. 10, “Contract Enforceability and Termination Clauses.”
TRG Memo No. 11, “Meeting — Summary of Issues Discussed and Next Steps.”
Revenue associated with the license would be recognized at the beginning of each month, which is similar to ratable recognition given the short term (monthly).
See footnote 5.
Total noncancelable consideration of $5,100 for the initial month is allocated on a relative stand-alone selling-price basis — that is, approximately 98 percent to the license and 2 percent to one month of PCS.