Revenue Recognition

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Question

When is a contract modification treated as a separate contract?

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Answer

When added distinct goods are sold at standalone selling price.

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Question

How is variable consideration estimated under ASC 606?

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Answer

Use expected value or most likely amount.

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Question

What is the bill-and-hold revenue trigger?

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Answer

Customer obtains control, not mere invoicing.

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Question

Why do exchange transactions follow ASC 606 instead of contribution rules?

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Answer

They involve reciprocal value.

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