We have also explored the process for how FASB Standards are set. Using the FASB Codification (ASC) as your source (there is a link and password in Start Here), review the standard on revenue recognition. Discuss how you would apply this standard to the income statement of your current, past, or future job and if you think these rules need any revisions. Be sure to cite your source, you can use ASC 606-10-65-1. In 5 sentences.

The Revenue Recognition Topic provides guidance for transaction-specific revenue recognition and certain matters related to revenue-generating activities that are not addressed specifically in other Topics. Other Topics may contain transaction-specific revenue recognition guidance related to transactions in those Topics. This Topic includes the following Subtopics:

• a. Overall. The Overall Subtopic provides guidance on the following:
  • 1. Revenue and gains
  • 2. Installment and cost recovery methods of revenue recognition.
• b. Products. The Products Subtopic provides guidance on the following:
  • 1. Sales with a right of return
  • 2. Repurchases of product sold subject to an operating lease.
• c. Services. The Services Subtopic provides guidance on the following:
  • 1. Separately priced extended warranty and product maintenance contracts
  • 2. Commissions from certain experience-rated or retrospective insurance arrangements
  • 3. Certain loan guarantee fees
  • 4. In-transit freight service
  • 5. Advertising barter transactions.
• d. Multiple-Element Arrangements. The Multiple-Element Arrangements Subtopic provides guidance on arrangements under which a vendor will perform multiple revenue-generating activities (that is, provide multiple deliverables).
• e. Rights to Use.
• f. Construction-Type and Production-Type Contracts. The Construction-Type and Production-Type Contracts Subtopic provides guidance on contracts for which specifications are provided by the customer for the performance of contracts for the construction of facilities or the production of goods.
• g. Gains and Losses. The Gains and Losses Subtopic provides guidance on miscellaneous gains and losses not addressed in other Topics in the Codification.
• h. Principal-Agent Considerations. The Principal-Agent Considerations Subtopic provides guidance on reporting revenue gross or net of certain amounts paid to others.
• i. Customer Payments and Incentives. The Customer Payments and Incentives Subtopic provides guidance on accounting by vendors and customers for consideration given by a vendor to a customer.
• j. Milestone Method. The Milestone Method Subtopic provides guidance on the application of the milestone method of revenue recognition in arrangements that include research or development deliverables.

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The Financial Accounting Standards Board FASB ASC 60610651 outlines the revenue recognition standard ... View the full answer