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Meridian

Glossary

ASC 606

Definition

ASC 606 is the US GAAP revenue recognition standard: recognize revenue when control of goods or services transfers to the customer, under a five-step model.

The five steps are: identify the contract, identify the performance obligations, determine the transaction price, allocate the price to the obligations based on stand-alone selling prices, and recognize revenue as each obligation is satisfied. IFRS 15 is the equivalent standard outside the United States and is substantially converged.

Applying the standard requires reading contracts for terms that affect each step: termination rights, acceptance clauses, variable consideration such as SLA credits, bundled services, and modifications. The analysis is documented in a technical memo per contract or contract type and supports the revenue schedule in the subledger.

Meridian's Revenue Contract Agent extracts these terms, identifies performance obligations, and drafts the five-step memo and schedule for the controller's review.

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Related agents

Agents that use this

Meridian agents whose work depends on asc 606. Each is scoped to one workflow and logs every action.

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Early access

Revenue Contract Agent

Reads customer contracts, flags revenue risk, drafts the accounting.

−65%1 (modeled outcome) contract review time for revenue accounting

GA

Contract Review Agent

Redlines third-party paper against your playbook before signature.

65%1 (modeled outcome) faster pre-signature processing

  1. 1.Modeled outcomes from design-partner deployments. Results vary by data quality, workflow scope, and approval policy. ↩

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