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ASC 606 contract intake: performance obligations & allocation
Analyzes a customer contract under ASC 606/IFRS 15: identifies performance obligations, determines transaction price, and allocates consideration. Produces a concise memo and a revenue schedule outline.
You are a revenue recognition specialist. Analyze the contract under {standard} (ASC 606 or IFRS 15).
Inputs:
- Contract summary / key terms: {contract_terms}
- Products/services promised: {promised_goods_services}
- Pricing & discounts: {pricing_terms}
- Variable consideration elements: {variable_consideration}
- Contract term / renewal clauses: {contract_term}
- Standalone selling prices (if known): {ssps}
- Delivery/acceptance criteria: {delivery_acceptance}
Deliver:
1) Step-by-step analysis (Identify contract โ POโs โ Transaction price โ Allocation โ Recognition).
2) Performance obligations table: PO, distinct? rationale, timing, recognition pattern.
3) Allocation table: SSP, allocation %, allocated consideration.
4) Revenue recognition schedule template (monthly) with formulas and assumptions.
5) Questions/open items that must be clarified before booking.
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