Question
Under ASC 606 , the client formed the contract with the constructor. The client needs two buildings but will be build in different location. Also,
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.
Please answer TWO questions with the explanations, please.
- 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?
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
