- When contracts include variable consideration, it is possible that changes in the transaction price can arise after a modification, and such changes may or may not be related to performance obligations that existed before the modification.
- The new accounting standard requires a contractor evaluates whether it obtains control of the goods or services, using the transfer of control guidance, and consider whether it is serving in the capacity of a principal or an agent before concluding on noncash consideration.
- The new accounting standard requires a contractor considers whether the pricing of the contract contains an element of financing when, at contract inception, the period between when the contractor transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or more.
- Determining the transaction price under the new standard requires contractors apply judgment and document processes and controls related to variable consideration, noncash consideration and the existence of a significant financing component.
- Baker Tilly partnered with Bisnow, a leading commercial real estate news source, to produce exclusive interviews that provide behind-the-scenes perspectives from leading real estate developers, entrepreneurs and industry giants.
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