Variable consideration under Accounting Standards Codification.

Question

Instructions

Write a one-page report that addresses the bullets below. Your writing should reference the Accounting Standards Codification, Section ASC 606 from Revenue From Contracts With Customers (Topic 606), using proper in-text citations. Include the following in your evaluation:

Describe variable consideration.

Explain what a company must do if a contract contains a variable consideration.

Identify the items in a contract that generally result in a variable consideration.

Explain the expected value and most likely approach.

Summarize the factors to be considered in the analysis when a reversal could occur and why they are important.