Josh Mortensen and Jeff Wilks
Many digital marketing arrangements involve consideration payable to a customer. Learn whether such payments should be a reduction of revenue or a marketing expense.
Understand the key differences between variable consideration and customer options for additional goods or services under ASC 606.
Analysis of ASC 606's treatment of payments paid to customers, including the payment types and the timing of recognizing a reduction in revenue.
Analysis and examples of ASC 606's requirement to constrain variable consideration based upon likelihood and magnitude, including diversity in thought.
Determine the transaction price of a contract with noncash consideration under ASC 606, including when and how to measure variable fair value.
Analysis of revenue recognition for nonrefundable upfront fees under ASC 606, including when fees relate to specific goods or services and material rights.
Analysis of price concessions based on the customer’s expectation and the specific facts and circumstances of the transaction, examples are included.
Depending on the type, a right of return may be a variable consideration under ASC 606.
Analysis of financing components for payments made before or after goods or services are delivered under ASC 606.
Analysis and example of estimating variable consideration and applying the constraint under ASC 606.
Analysis of ASC 606's approach for estimating the transaction price of a contract with possible discounts for future volume purchases or discount vouchers.