Did the company incur costs to fulfill the contract?

After entering into a contract with a customer companies often incur costs related to fulfilling the performance obligations in the agreement. If these costs are accounted for under separate guidance, then entities should first apply the other guidance.

If these costs are not accounted for under other guidance, then they maybe capitalized under ASC 340, if certain criteria are met (refer to the next question).

ASC 606-10-55-54 thru 58

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