Executive Summary Under ASC 606 and IFRS 15, Step 4 – Allocate the Transaction Price relies fundamentally on the concept of Standalone Selling Price (SSP). While the accounting standards define what SSP represents, they intentionally […]
Executive Summary In revenue recognition under ASC 606 and IFRS 15, Standalone Selling Price (SSP) is the foundational input for allocating transaction price to performance obligations. However, in operational revenue systems and real‑world contracts, SSP […]
Executive Summary Under ASC 606 and IFRS 15, Step 4 – Allocate the Transaction Price is deceptively simple in wording but highly nuanced in execution. Practitioners frequently encounter multiple SSP-related terms—Standalone Selling Price (SSP), Unit […]
Executive Summary This section complements the earlier whitepapers on Transaction Price Allocation (Step 4) and Contract Modifications under ASC 606 and IFRS 15 by providing end-to-end journal entry illustrations. The objective is to translate allocation […]
Accounting Treatment of Contract Modifications Under ASC 606 and IFRS 15 Executive Summary Contract modifications are common in subscription, SaaS, long-term service, and usage-based business models. Customers upgrade, downgrade, extend terms, add services, receive concessions, […]
Executive Summary Under ASC 606 and IFRS 15, revenue recognition is governed by a five-step model designed to ensure that revenue reflects the transfer of goods and services to customers in an amount that depicts […]
Executive Summary In the modern regulatory landscape, Step 3 of the 5-Step Model (Determine the Transaction Price) represents the bridge between static contract data and dynamic accounting judgment. While conceptually accounting-driven, it is operationally data-intensive. […]
Step 3 – Determine the Transaction Price (ASC 606-10-32 / IFRS 15:47–72) Executive Summary Step 3 of the five-step revenue recognition model—Determine the Transaction Price—is one of the most judgment-intensive and auditor-sensitive areas under ASC […]
Understanding Selling Price Ranges, Range Policies, and Applied SSP Values 1. Introduction and Context ASC 606 and IFRS 15 require entities to allocate the transaction price to performance obligations based on their Standalone Selling Prices […]
(ASC 606 / IFRS 15 Perspective) Subscription-based business models require a precise translation of commercial pricing constructs into accounting-compliant revenue data. Under ASC 606 and IFRS 15, this translation must ensure that revenue reflects the […]
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