If we conclude that a material uncertainty exists, then we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. The paper discusses each of the types of deferred revenue listed above and presents a sample disclosure in a table format The table identifies the amount of each type of deferred revenue, before elimination entries as well as the consolidated total that appears on the balance sheet. If $1,500 of the $2,000 was recognized as revenue in the first quarter of 20x8, the entity should disclose $1,500 as the amount of revenue recognized during that period that was previously included in the deferred revenue (contract liability) balance as of december 31, 20x7. Revenues received and that have been set aside for specific purposes by legislation, regulation or agreement are included in deferred revenue and reported on the consolidated statement of financial position. The new revenue recognition standard requires significantly more disclosures than legacy us gaap both when adopted and annually.
This paper discusses deferred revenue situations and provides sample disclosure language for several scenarios You must be a logged in strength matters subscribers to access this content. Provides over 750 examples of realistic sample footnote disclosures to assist in the preparation of financial statements for an audit, a review, or a compilation engagement. To receive a price concession, distributors must submit the price concession claims to us for approval within 60 days of the resale of the product to an end customer.
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