Question
Background: Assume that Shumers, Inc. is a private company with a calendar year-end. Shumers must determine when and how it will adopt the revised revenue
Background:
Assume that Shumers, Inc. is a private company with a calendar year-end. Shumers must determine when and
how it will adopt the revised revenue standard.
a. In what period must Shumers first apply ASC 606-10?
b. How must the standard be initially applied (prospectively, retrospectively)? Explain.
c. Could Shumers early adopt, if it chose to do so?
My question are these correct?
A. Shumers is not a public entity, nor are they a not-for-profit entity, so Shumers falls into the category of "all other entities" in paragraph "b" of ASC 606-50-10-65-1. The period that Shumers must first apply ASC 606-10 is the annual reporting period after December 15, 2018 (the 2019 fiscal year).
B. The standard must be applied restrospectively
C. Shumers cannot choose to adopt this new standard early.
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