ASC 606-10-25-23

An entity shall recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (that is, an asset) to a customer.  An asset is transferred when (or as) the customer obtains control of that asset. 

WHEN DOES THE CUSTOMER OBTAIN CONTROL?

Use the five below indicators to determine the point in time at which a customer obtains control (ASC 606-10-25-30).

1. Entity has a present right to payment for the asset.
2. Customer has legal title to the asset.
3. Entity has transferred physical possession of the asset.
4. Customer has the significant risk and rewards of ownership of the asset.
5. Customer has accepted the asset.