Analysis and examples of contract assets and liabilities under ASC 606, including balance sheet presentation and implementation effects
Posts Authored by Christian Jones
Analysis of changes in the price or scope of a contract and whether they qualify as modifications and should be treated as a separate, standalone contract.
If a contract modification is not considered a separate contract, entities use the Prospective Treatment method or Cumulative Catch-up Adjustment method.
The FASB and IASB provide a practical expedient on contract modification adjustment – the use of hindsight to account for all changes at once.