https://rsmus.com/insights/financial-reporting/a-guide-to-revenue-recognition.html
Abstract:
RSM’s guide provides a detailed, up-to-date walkthrough of how to apply ASC 606 (Revenue from Contracts with Customers) in practice. It covers the full five-step revenue recognition model under ASC 606 and related guidance (e.g., ASC 340-40), including key topics like contract scope, performance obligations, variable consideration, contract costs, and required disclosures. The 2025 edition includes new and expanded content—such as accounting for contract modifications, contract disputes, residual-method allocations, and one-time payments—reflecting recent real-world issues companies face under the standard.
Why it Matters:
This guide helps companies apply ASC 606 accurately and consistently, reducing the risk of misstatements, audit issues, or restatements. By addressing real-world challenges such as contract modifications, variable consideration, contract disputes, and disclosure requirements, it equips organizations to handle complex and evolving revenue arrangements with confidence. The updated content also supports stronger governance and more transparent financial reporting, improving comparability for investors and stakeholders. And because many mid-sized companies may not have access to Big-4 advisory resources, RSM’s practical approach fills a critical need for reliable, high-quality revenue recognition guidance.
