#Due to due from accounting professional#

Accordingly, the related disclosures (e.g., methods, inputs, and assumptions) of the revised estimate of variable consideration must also be updated. The revised estimate must then be updated at each reporting date throughout the contract term. For example, if companies need to provide refunds or discounts on a previously promised good or service that cannot be provided timely due to the COVID-19 crisis, prior estimates of the variable consideration will need to be revised. Variable Consideration: Under ASC 606 (Revenue from Contracts with Customers), if companies have contracts that contain variable consideration (for example, contracts with discounts, refunds, or penalties), the variable consideration initially estimated at contract inception may need to be reassessed and recalculated.

#Due to due from accounting professional#

For example, if a Company has always included professional services free-of-charge with the promised good or service they are selling, the obligation of providing such professional services may become increasingly burdensome and costly as a result of the COVID-19 crisis (e.g. Expected Consideration: A Company may need to rethink how their current revenue contracts are structured before executing any new arrangements with customers if obligations that are to be performed by the Company begin to outweigh the expected consideration to be collected from customers. Technical Accounting Accomodations Revenue Recognition The list of possible issues is not all inclusive nor complete in its representation of other areas affecting companies.

The content herein is included only for informational purposes of possible issues that could present themselves. Companies will need to consider whether those issues, as well as operational disruptions to their overall business, rise to the level of additional required disclosures, Management’s Discussion and Analysis (“MD&A”) and/or discrete accounting recognition. With the continued spread of COVID-19 and its overwhelming effect on the global economy, we anticipate companies will experience complex accounting and reporting issues across multiple areas of their financial statements. BDO is continuously finding new ways to help your organization thrive. When it comes to business, innovation is changing everything. The insights and advice you need, everywhere you do business. Stay abreast of legislative change, learn about emerging issues, and turn insight into action.

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