- 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.
- 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.
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