ASC 606 requires policy for rounding cent differences in revenue allocation

Under ASC 606 revenue rules, allocating a contract's price across performance obligations often results in fractions of a cent. Individually rounding each obligation's share can cause the total to be one cent more or less than the original transaction price. A residual-cent policy determines which performance obligation absorbs this rounding difference to ensure exact totals. The accounting standard itself does not specify a rounding method, leaving entities to establish their own consistent, written policy.