Part 1 Section A.2.4. Revenue Recognition 収益認識


The objective of the revenue recognition standard in ASC 606 is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability across industries, jurisdictions, and capital markets.

ASC 606

The revenue recognition principle is to recognize in the accounting period in which the performance obligation is satisfied. A performance obligation is satisfied when the customer obtains control of the asset, and the asset is the good or service transferred to the customer. Therefore, revenue should be recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration that the company expects to be entitled to in exchange for those goods or services.

ASC 606-10-05-3

Five Steps to Revenue Recognition

  1. Identify the contract with a customer
  2. Identify the separate performance obligations in the contract
  3. Determine the transaction price
  4. Allocate the transaction price to the separate performance obligations in the contract
  5. Recognize revenue when or as each performance obligation is satisfied

Contract With a Right of Return
When the right of return exists, the contract consideration is variable consideration and the contract price excludes the consideration for products expected to be returned or amounts expected to be refunded.