GAAP Dynamics: STEP 3: DIFFERENCES IN ASC 605 / SAB 104 AND ASC 606 #RevRec

GAAP Dynamics posted part 3 in their Step-by-Step series.  The post illustrates the 3rd step, Determine the Transaction Price, of the 5 Step model prescribed by the new revenue guidance (ASC 606).  The post focuses on a hypothetical example in which a performance bonus is included in a contract, highlighting how revenue previously deferred under the existing guidance can be pulled forward under the new standard.