Andrew Bellomy and Cassy Budd
Analysis and examples of the criteria for determining if contracts entered into with a customer at or near the same time must be combined for revenue recognition.
Analysis of the collectability requirement of ASC 606, including accounting for contract's with initial and subsequent collectability issues.
Christian Jones and Cassy Budd
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.
Analysis of the updated definition of a customer in ASC 606's scope considerations, including examples of common transactions in a business context.
Analysis of the scope considerations of ASC 606 and how ASC 606 interacts with other guidance, including an example of a transaction with mixed guidance.
The first step of ASC 606 is to identify the contract with a customer. ASC 606 outlines many criteria, including legal enforceability and collectability.