Ayden's Revenue Compass
Sign in
← Back to Home

ASC 606 Analysis

Enter and review the accounting judgments. All accounting judgments are yours; allocation, revenue recognition and reconciliation amounts are produced by the deterministic ASC 606 engine and are read-only.

This sample is for exploration only. Changes stay in this browser tab and reset when the page is refreshed.

Sample — Horizon Logistics

Sample
Draft completeRecognition · Over time
Customer
Horizon Logistics
Performance obligations
3
Contract
DEMO-HORIZON
Transaction price
$153,000.00

Fictional sample — edit any assumption to explore the accounting.

Review & FinalizeSource Documents

ASC 606 Analysis

Contract Overview

Basic contract facts.

ASC 606 Contract Criteria

Answer each criterion and document your rationale. The conclusion below is derived and cannot be overridden.

The parties have approved the arrangement (in writing, orally or per customary practice) and are committed to perform their respective obligations.

Approval and commitment

Each party's rights regarding the goods or services to be transferred can be identified.

Rights are identifiable

The payment terms for the goods or services to be transferred can be identified.

Payment terms are identifiable

The arrangement has commercial substance: the risk, timing or amount of future cash flows is expected to change as a result of the contract.

Commercial substance

Collection of the consideration to which the entity expects to be entitled in exchange for the goods or services is probable.

Collectibility is probable

Derived conclusion (not editable)

Qualifies as a contract under ASC 606.

Additional Topics Applied