Question
Compared with expensing, how does capitalization typically affect cash flow classification in the current period?
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Answer
Higher CFI and not CFO.
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Question
Under IFRS 15 and ASC 606, what must exist before revenue can be recognized from a customer arrangement?
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Answer
A valid contract with enforceable rights and probable collection.
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Question
What makes a promised good or service a separate performance obligation?
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Answer
It is distinct and separately identifiable.
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Question
A software sale includes a license, installation, and one year of support, each with standalone value. How many performance obligations are there?
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Answer
Three separate performance obligations.
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