“Revenue Recognition isn’t going away, so we have developed another tool to help our members navigate the potentially rough waters.”
The Contract Abstract Analysis Tool has been created to help members understand more clearly the steps involved in implementing ASC Topic 606, and the following steps relating to contracts:
- Defining the Contract (written, oral or implied)
- Identifying the Performance Obligations
- Determination of the Transaction Price
- Allocating the Transaction Price to the Performance Obligations
- Recognizing Revenue when or as the Company Satisfies a Performance Obligation
Special thanks to Christina Chifici (LaPorte CPAs, Louisiana), Bryan Eto (BeachFleischman, Arizona), Fariba Mehdian (Gelman LLP, California) and Anneka Sciola (CalvettiFerguson) for spearheading this project – which was a direct result of the Thought Leadership Committee!