CRM DAILY — YOUR DAILY CRM & GTM INTELLIGENCE
IST
// CRM_STOCKS_LIVE
← GlossaryCRM 101 · Metrics
// Metrics

ASC 606

The US GAAP standard governing revenue recognition from contracts with customers, in force since 2018.

In depth

ASC 606 (and its IFRS twin, IFRS 15) enforces a five-step model: identify the contract, identify performance obligations, determine transaction price, allocate to obligations, recognise as satisfied. It's why sales, product and finance argue about what counts as 'one product' vs. 'a bundle'.

Related terms

Revenue Recognition
The accounting process of recording revenue in the period it is earned, not the period it is billed or collected.
Deferred Revenue
Cash collected for services not yet delivered, sitting on the balance sheet as a liability until earned.
← Back to full A-Z