Modifying a contract? Your revenue recognition may change

PwC's accounting podcast · Jul 23, 2024 · 31m · transcript

We continue our revenue podcast miniseries discussing contract modifications. Contract modifications are accounted for as either a separate contract or as part of the existing contract, depending on the nature of the modification.

In this episode, we discuss:

4:47 – An overview of contract modifications

5:57 – Modifications that are accounted for as separate contracts

6:54 – Modifications that are accounted for prospectively

10:08 – Modifications that result in cumulative catch-up adjustments

11:28 – Other types of modifications

13:16 – Common contract modification scenarios and related…