Latest edition: Our guide to the implementation of ASC 606 for franchisors.
This April 2021 edition expands on our existing ASC 606 guidance for franchisors to incorporate insights on the adoption of ASU 2021-02, which simplifies how private company franchisors analyze certain activities when determining their performance obligations in a franchise agreement.
Annual periods – Fiscal years beginning after
Interim periods – In fiscal years beginning after
Early adoption allowed in fiscal years beginning after
* (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; (3) employee benefit plans that file financial statements with the SEC; and (4) other entities that issued (made available for issuance) financial statements reflecting the adoption of Topic 606 before June 3, 2020.
** ASU 2020-05 deferred the effective date for those specific other entities by one year.
Franchisors that have adopted Topic 606
Annual and interim reporting periods after December 15, 2020
Franchisors that have not yet adopted Topic 606
Apply transition provisions and effective dates for Topic 606 above, using the full retrospective method
Revenue for franchisors
Handbook: Revenue recognition
Latest edition: Our in-depth guide to the revenue standard, ASC 606.
KPMG guides and publications relevant to FASB's revenue standard
In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues.
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