Distinct Goods or Services in ASC 606

Authors

Andrew Bellomy, Brigham Young University - Provo
Jeff Wilks, Brigham Young University - ProvoFollow
Jessica Ford, Brigham Young University - Provo

Keywords

performance obligations, distinct goods, services, ASC 606 guidance

Abstract

Step 2 in ASC 606 Revenue from Contracts with Customers is to identify performance obligations in the contract. This means an entity must identify any promise to transfer “a good or service (or a bundle of goods or services) that is distinct” (ASC 606-10-25-14). In this article, we focus on the meaning of “distinct” and provide guidance, case studies, and recent SEC comment letters that clarify this concept.

Original Publication Citation

Distinct Goods or Services: Case Studies (A. Bellomy, T. J. Wilks and J. Ford), RevenueHub, September 21, 2016, updated August 11, 2020. (18,453 unique views as of Jan. 13, 2023)

BYU ScholarsArchive Citation

Bellomy, Andrew; Wilks, Jeff; and Ford, Jessica, "Distinct Goods or Services in ASC 606" (2020). Faculty Publications. 8665.
https://scholarsarchive.byu.edu/facpub/8665

Document Type

Peer-Reviewed Article

Publication Date

2020

Publisher

RevenueHub

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Copyright Use Information

https://lib.byu.edu/about/copyright/