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ASC 610 — Other Income

ASC 610, Other Income, was issued in May 2014 as part of the joint revenue recognition standard. It is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016, for public entities. Early application is not permitted (however, early adoption is optional for entities reporting under IFRSs).

The effective date for nonpublic entities is annual reporting periods beginning after December 15, 2017, and interim reporting periods within annual reporting periods beginning after December 15, 2018. Nonpublic entities may also elect to apply ASC 610 as of any of the following:

  • The same effective date as that for public entities (annual reporting periods beginning after December 15, 2016, including interim periods).
  • Annual periods beginning after December 15, 2016 (excluding interim reporting periods).
  • Annual periods beginning after December 15, 2017 (including interim reporting periods).

 

Related resources

See our comprehensive collection of news and publications related to revenue as well as our project page detailing the progress of the FASB/IASB joint revenue project.

 

International guidance

For the IASB's guidance on revenue recognition, see IFRS 15, Revenue from Contracts with Customers.

 

Overview

The full text of ASC 610 can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

ASC 610 comprises three Subtopics (Overall, Gains and Losses From the Derecognition of Nonfinancial Assets, and Gains and Losses on Involuntary Conversions). Below is an overview of each Subtopic.

 

610-10 Overall

ASC 610-10 defines the scope of the Other Income Topic, and notes the following:

 

The Other Income Topic specifies standards of financial accounting and reporting for income recognized that is not in a contract with a customer within the scope of Topic 606 on revenue from contracts with customers, other Topics (such as Topic 840 on leases and Topic 944 on insurance), or in accordance with other revenue or income recognition guidance.

610-20 Gains and Losses From the Derecognition of Nonfinancial Assets

ASC 610-20 notes the following:

 

This Subtopic provides guidance on a gain or loss recognized upon the derecognition of a nonfinancial asset within the scope of Topic 350 on intangibles and Topic 360 on property, plant, and equipment (including in substance nonfinancial assets) if those assets are not in a contract with a customer within the scope of Topic 606 on revenue from contracts with customers.

610-30 Gains and Losses on Involuntary Conversions

ASC 610-30 notes the following:

 

This Subtopic clarifies the accounting for involuntary conversions of nonmonetary assets (such as property or equipment) to monetary assets (such as insurance proceeds). Examples of such conversions are total or partial destruction or theft of insured nonmonetary assets and the condemnation of property in eminent domain proceedings.

The terms nonmonetary and monetary as used in this Subtopic have the same meaning as those terms have in Topic 845.

Although this Subtopic provides specific guidance for gains and losses resulting from involuntary conversions, the majority of other guidance for gains and losses is included in the Derecognition Section of the relevant asset or liability Topic.

FASB Accounting Standards Updates

The following ASUs amended the guidance in this Topic:

 

Proposed FASB Accounting Standards Updates

No current proposed ASUs on Topic 610.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.