The standard takes an asset and liability approach and articulates a core principle on which the new guidance is based. Achieve the core principle, entities should follow these steps: identify the contract with customer (ASC 606through 25); identify performance obligations (promises) in the ...
The core principle reflects the asset and liability approach that underlies the standard. The five steps of the revenue recognition model include: identify the contract with customer, identify performance obligations in the contract, determine the transaction price, allocate the transaction price and ...
ASC 606 directs entities to recognize revenue when the promised goods or services are transferred to the customer. The amount of revenue recognized should equal the total consideration an entity expects to receive in return for the goods or services. The Financial Accounting Standards Board (FASB) ...
when determining the transaction price, the entity shouldlook more widely than the contract terms and examine the entity’s customary business practices,published policies, and specific statements. Also, the entity should assume that the terms of thecontract ...
first. The remaining portion is accounted for under the requirements of the new Standard. If the other standard does not have applicable separate and/ or initial measurement guidance, the entity should apply the revenue standard to separate and/or initially measure the contract. (ASC 606-10-15-...
The standard takes an asset and liability approach and articulates a core principle on which the new guidance is based. Achieve the core principle, entities should follow these steps: identify the contract with customer (ASC 606through 25); identify performance obligations (promises) in the contrac...
Prospective or cumulative approach:ASC 606 allows companies to account for contract modifications using either a prospective or a cumulative approach. The prospective approach involves applying the new guidance to the modified contract, while the cumulative approach requires adjusting the contract as if th...
这里有一个initial direct cost,这个是个比较有趣的话题,就是在新的准则底下,初始的一些直接成本,是可以形成asset的,这个和以前的guidance不一样。这个直接成本主要是指什么呢,中介费,律师费,这个必须是incremental。Incremental guidance里面说的是套用ASC 606里面。大家知道在ASC 606里面对获得这个contract cost,必须...
同时还需要和大家强调的是,虽然你可能identify出了asset同时也能控制这个asset,但还需要去考虑lessor是否可以很随意的给你换掉这个asset。要成为substantive right of substitution需要满足两个,第一个是换这个asset是不需要得到你的consent,想换就换;第二个是lessor把这个换掉对他自己是有benefit的,即他不会付出很大得...
ASC 606 has a concept of contracts, which more generally are “performance obligations” to customers. A contract means that there is an agreed upon price in exchange for delivery of a product or service – i.e. an “obligation” to perform. ...