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Wiley Revenue Recognition plus Website by Joanne M. Flood

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1Step 1—Identify the Contract with the Customer1

  1. Overview
  2. Assessing Whether Contracts are Within the Scope of the Standard
    1. Enforceable Rights and Obligations
    2. The Five Contract Criteria
      1. The Contract has Approval and Commitment of the Parties
    3. Example 1.1: Oral Contract
    4. Example 1.2: Product Delivered, but No Written Contract Exists
    5. Example 1.3: Contract Extension
    6. Example 1.4: Meeting the Termination Criteria
      1. Rights of the Parties are Identifiable
      2. Payment Terms are Identifiable
      3. The Contract has Commercial Substance
      4. Collectibility of Consideration is Probable
  3. Collectibility Threshold
    1. Comparison with Legacy Guidance
    2. Differences between IFRS and U.S. GAAP
    3. Assessing Collectibility
      1. Judgment
      2. Timing of Assessment
      3. Collectibility = Intent and Ability to Pay
      4. Consider Only Transaction Price
      5. Basis of Assessment May Be Less than Total Consideration
    4. Example 1.5: Assessing Collectibility—Implied Price Concession
    5. Example 1.6: Assessing Collectibility—Meeting the Collectibility Threshold
  4. Contract Recognition
  5. Arrangements where Contract Criteria are not Met
    1. Example 1.7: No Contract Exists—Accounting for Consideration Received
    2. Reassessment
  6. The Portfolio Approach and Combining Contracts
    1. A Practical Expedient
    2. Combination of Contracts Required
    3. Assessing Collectibility of a Portfolio of Contracts
  7. Identifying the Customer
    1. Collaborative Arrangements
    2. Example 1.8: Collaborative Arrangement
    3. Arrangements with Multiple Parties

Overview

For the most part, guidance for Step 1 in applying the revenue ...

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