If a company has a variable consideration bonus based on the most likely amount approach but the
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Question:
If a company has a variable consideration bonus based on the most likely amount approach but the consideration is based on whether or whether not the company meets certain obligations within a specific frame of time how should the variable consideration be allocated if it is a 75% chance it will fulfill the obligation with no chance of reversals?
Will the bonus be allocated overtime within the transaction price of the contract?
Singular because the bonus is contingent on whether or not the product is used at a certain amount within a period?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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