https://kpmg.com/us/en/frv/reference-library/2024/handbook-revenue-recognition.html
Abstract:
The Handbook: Revenue Recognition is a comprehensive guide to applying ASC 606 (and related guidance) under U.S. GAAP. It explains the five-step revenue-recognition model, addresses contract-cost accounting, and offers Q&As, interpretive guidance, and illustrative examples to help companies with common and complex contract scenarios. It’s designed to help practitioners interpret the standard consistently — from identifying contracts and performance obligations to allocating transaction prices and recognizing revenue. The 2024 edition reflects recent developments and includes updated guidance on evolving issues in revenue accounting.
Why it Matters:
Accurately recognizing revenue under ASC 606 is often complex — especially for companies with bundled services, variable pricing, or long-term contracts — and mistakes can significantly distort financial results. This KPMG Handbook gives companies a well–recognized, independent reference tool for making those judgment calls consistently and defensibly. By providing clear examples and interpretive guidance, it helps reduce the risk of misstatements, audit problems, or restatements. And because it’s updated regularly, it ensures companies stay aligned with the latest accounting practices and emerging issues.
