Under ASC 606, the client formed the contract with the constructor. The client needs two buildings but

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Under ASC 606, the client formed the contract with the constructor. The client needs two buildings but will be build in different location. Also, there are several requirements to form the contract such as (1) Estimation cost, (2) Estimation period, (3) % of margin policy, and (4) payment term.

Are they (two buildings) separate (or distinct) performance obligation under ASC 606-10-25-19?

Which method should be chosen to determine the transaction price under ASC 606-10-32-8? Expected value or most likely value?

Related Book For answer-question

Chemistry The Central Science

ISBN: 978-0321696724

12th edition

Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward

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Posted Date: Nov 11, 2020 06:33 AM

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Under ASC 606, the client formed the contract with the constructor. The client needs two buildings but

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1 Both buildings have separate performance obligations under ASC 606 because of their requirements as both of the buildings are in different locations ... View the full answer

Chemistry The Central Science

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