By virtue of its fiscal 2019 year, which began in February, machine data analysis pioneer Splunk Inc (NASDAQ: SPLK) is part of a first wave of companies complying with Accounting Standards Codification (ASC) number 606: "Revenue From Contracts With Customers." This new accounting standard under GAAP, effective for public companies with annual periods that begin after December 15th, 2017, clarifies the reporting of revenue from contractual relationships.ASC 606 is based on the following, very simple premises.