Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. ... Long-term contracts are accounted for using the percentage of completion method.May 31, 2010
What is an arrangement with multiple DeliveRAbles?
multiple DeliveRAbles ARe A wAy oF liFe It is a common business practice for companies to provide multiple products or services (“deliver- ables”) to their customers as part of a single arrangement. These arrangements can be provided over multiple quarterly or even annual reporting periods.
What is the difference between ASC 605 and ASC 606?
ASC 606 focuses on the transfer of control rather than the satisfaction of obligations prescribed by ASC 605. It's a principles-based framework that introduces more judgement into the revenue recognition process. Its core principles are focused on the nature of the promises in a contract.Aug 9, 2017
What is a multiple element arrangement?
Revenues from contracts with multiple element arrangements are recognized as each element is earned based on the relative fair value of each element provided the delivered elements have value to customers on a standalone basis. ... Long-term contracts are accounted for using the percentage of completion method.May 31, 2010