Pat Durbin, a seasoned PwC National Office Deputy Chief Accountant, and Mike Coleman, a PwC partner specializing in revenue and software arrangements, delve into the complexities of revenue recognition under the ASC 606 model. They discuss when performance obligations are fulfilled—either over time or at a point in time. Key topics include the intricacies of control transfer, challenges in customized product revenue recognition, and exceptions like the 'right to invoice' in service agreements. Their insights reveal the nuances of aligning revenue recognition with performance and customer value.
