Revenue Recognition When Revising Old Contracts
Compliance Week › Vol. 7 Nbr. 76, May 2010
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Summary
[James DePonte] said preparers often reason that the individual legal contracts are distinct from one another, so they should be recognized as such. Preparers wonder if "I have no further obligation under the old contract, I received cash payment, and it's non-refundable, why isn't this revenue?" DePonte says. "In my experience, auditors and regulators will take a more holistic view.
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Revenue Recognition When Revising Old Contracts
Companies renegotiating long-term contracts with customers would be wise to check with their auditors about how to recognize revenue under the old agreement. They may be surprised by what they hear.
Market downturns inspire vendors and customers in virtually any sector to review the economics behind existing service or ...See the full content of this document
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