When a product is delivered to another party with the purpose of being resold to an end customer, the reporting entity must evaluate whether control has transferred. For products that are held on consignment control may not have transferred, and the reporting entity would not be entitled to recognize revenue.
There are certain Indicators that must be evaluated to determine if control has transferred. Indicators that suggest control has not transferred include, but are not limited to, the following:
ASC 606-10-55-79 thru 80
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