7/23/2023 0 Comments Progress invoice exampleExamples include a contract to provide technical support related to a product sold to customers or a contract to provide a customer membership to a health club. It is not appropriate to default to straight-line attribution however, straight-line recognition over the contract period will be reasonable in many cases. Judgment will be needed to determine the appropriate method to measure progress toward satisfaction of a stand-ready obligation that is a single performance obligation. Time-based methods to measure progress might be appropriate in situations when a performance obligation is satisfied evenly over a period of time or the reporting entity has a stand-ready obligation to perform over a period of time. As noted in Question RR 3-2, a stand-ready obligation will typically be a series of distinct goods or services that is accounted for as a single performance obligation. For example, it may be appropriate to use a time-based measure of progress (that is, straight-line recognition). A time-based measure of progress would result in recognition of the total transaction price ratably over the four-year period. If the scheduled price increases in the contract do not correspond directly with the increase in value to the customer of the reporting entity’s performance, management will not be able to elect the practical expedient and will need to determine another appropriate measure of progress. Management should consider factors such as the business reasons for the escalating fees and expected pricing of the services in future years. In order to use the practical expedient, the escalating fees in the contract need to correspond directly with the value to the customer of the reporting entity’s performance (that is, the value of the services in the second year are 10% higher than the value of the services in the first year). Management will need to assess whether the requirements to apply the practical expedient are met. Transfers and servicing of financial assets Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) Investments in debt and equity securities (pre ASU 2016-13) ![]() Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Click this button to toggle between interim and standard invoice text.Business combinations and noncontrolling interestsĮquity method investments and joint ventures Click the job details row to view the Description field and activate the edit button. It is possible to quickly change the text type, if you applied the wrong one when creating the invoice.Where it is possible to select multiple jobs and you select the option to create invoices with interim text, if one or more of those job types do not have interim text, the jobs will still be added to the invoice but with standard text instead.When you select a job to add to a draft invoice, using Add WIP Line, click Add With Interim Text.When you create an invoice from within a job, select the Create Invoice with Interim Text option from the Create Invoice menu.When you create invoices from the Jobs to Invoice page, select the Create Invoices with Interim Text option from the Create Invoices menu.When you create invoices from the Work in Progress area, select the Create Invoices with Interim Text option. ![]() See below as well for some additional information when working with interim invoice text. There are four instances when you can apply interim invoice text, as outlined below.
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