Companies determine whether a new contract and performance obligations results

Companies determine whether a new contract and

This preview shows page 60 - 62 out of 62 pages.

Companies determine whether a new contract (and performance obligations) results or whether it is a modification of the existing contract. Modification accounts for as a new contract if both of the following conditions are satisfied: Promised goods or services are distinct (i.e., company sells them separately and they are not interdependent with other goods and services) The company has the right to receive an amount of consideration that reflects the standalone selling price of the promised goods or services.
Image of page 60

Subscribe to view the full document.

Disclosure Companies disclose qualitative and quantitative information about the following: Contracts with customers. Significant judgments. Assets recognized from costs incurred to fulfill a contract. Companies provide a range of disclosures: Disaggregation of revenue. Reconciliation of contract balances. Remaining performance obligations. Cost to obtain or fulfill contracts. Other qualitative disclosures. Significant judgments and changes in them. Minimum revenue not subject to variable consideration constraint.
Image of page 61
Next Time Review the slides from today’s class. Next class: Revenue recognition (Part 2) Statement of Cash Flows focusing on indirect method to derive cash flows from operating activities Any questions?
Image of page 62
  • Winter '18
  • jane smith

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes