- 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.
- Law firms are occupying less space, and the rise of telecommuters compounds a number of other factors causing firms’ square footages to shrink. Baker Tilly partner, Bill Apple, shares his insights on how law firms are adapting to a rise in telecommuting attorneys, including implementing new processes to safeguard sensitive information and creatively tailoring layouts and lease agreements to meet new demands.
- To identify performance obligations, a contractor needs to determine whether or not the goods or services are distinct. The complexity arises in evaluating the promise(s) in the contract and determining whether they should be accounted for separately or together.
- Promised goods or services identified in a contract with a customer may not be limited to the goods or services that are explicitly stated in that contract. A contract with a customer may also include promises that are implied.
- To properly identify and account for performance obligations when other parties are involved in providing goods or services to a customer, a construction contractor must determine whether its performance obligation is to provide the good or service itself or to arrange for another party to do so.
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