What is ASC 606?
Definition
The US GAAP standard for revenue from contracts with customers, built on a five-step model. A major FAR topic.
An example
A software firm sells a licence with one year of support. Under the five-step model it identifies the performance obligations, allocates the price to each, and recognises revenue as each is satisfied.
Where ASC 606 matters
CPA (US): The global gold standard for accounting and audit. 4 Exams: 3 Core + 1 Discipline; 4 hrs Per section; 75 Passing score (0–99 scale); Prometric Test centres worldwide. Parts: FAR Financial Accounting & Reporting; AUD Auditing & Attestation; REG Taxation & Regulation.
Related terms explained
FAR: Financial Accounting and Reporting: a CPA Core section on US GAAP for businesses, not-for-profits and governments, including revenue, leases, debt and equity. Candidates often treat it as the heaviest section.
US GAAP: Generally Accepted Accounting Principles as used in the United States. The CPA FAR section tests US GAAP in depth.
Guides that mention it
How to choose the best CPA review course: There is no single best CPA review course. The best one is the one that matches how you learn, your budget and the time you have. Becker is known for lecture-led study, UWorld and Gleim for question banks, Surgent for adaptive learning, and HiPrep for step-by-step answer building with multi-language explanations.
How to choose a CPA review course: a checklist: Choose a CPA review course on six things: the quality of its exam simulator, how well it explains answers, the realism of its mock exams, the support you get, whether it works in your language, and the total cost including a possible retake.
Becker alternatives for CPA, CMA and EA: The main Becker alternatives are Surgent (adaptive, value-priced), Gleim (large question bank), UWorld (question bank plus video), NINJA CPA Review (lean and low cost), Fast Forward Academy (mobile-first) and HiPrep (step-by-step answers and multi-language explanations).
The cheapest way to prepare for the CPA exam without hurting your chances: The cheapest CPA prep is the one you finish and pass with the first time. Lower-cost courses can work well if you are disciplined and have a solid base; the biggest savings come from avoiding retakes, choosing the right access length and buying only what you need.
How HiPrep teaches it
In HiPrep, ASC 606 is taught concept-first and then practised in a Prometric-style simulator. Every answer is built step by step so you see how a result is reached, explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts. Start with the free diagnostic to see where ASC 606 sits in your plan.