Revenue accounting reset – Consideration payable to a customer

PwC's accounting podcast · Jul 29, 2025 · 41m · transcript

We continue our revenue accounting podcast miniseries with a discussion on payments to customers—an area that can raise complex accounting questions, especially when those payments come in the form of equity. We examine when these payments reduce revenue versus when they represent consideration for a distinct good or service. We also highlight updates from the FASB’s new guidance on share-based consideration payable to a customer.

In this episode, we discuss:

0:56 – Overview of consideration payable to a customer

5:41 – When to recognize payments to a customer

15:15 – Applying ASC 718 to…