Using detailed Q&As and examples, KPMG explains how the revenue standard (ASC 606) applies to software licensing and SaaS arrangements. Our latest guide is updated for continuing developments in practice.
ASC 606 and ASC 340-40
Effective date |
Public business and certain other entities* | Other entities that had not issued or made available for issuance financial statements as of June 3, 2020** |
---|---|---|
Annual periods – Fiscal years beginning after |
Effective |
Dec. 15, 2019 |
Interim periods – In fiscal years beginning after |
Effective |
Dec. 15, 2020 |
Early adoption allowed in fiscal years beginning after |
Dec. 15, 2016 |
|
* (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; (3) employee benefit plans that file financial statements with the SEC; and (4) other entities that issued (made available for issuance) financial statements reflecting the adoption of ASC 606 prior to June 3, 2020. |
||
** ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, deferred the effective date for those specific other entities by one year. |
This December 2020 edition includes new and updated interpretations based on our experiences with companies applying ASC 606, as well as discussions with the FASB and SEC staff.
Incorporates the following:
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