Assessing collectibility under ASC 606: 5 things you need to know
Podcast Podcast, PwC US 03/12/19
When can you recognize revenue for a customer in financial distress or bankruptcy?
Subscribe to our podcast
Determining when to recognize revenue under the new revenue standard for customers in financial distress or bankruptcy requires judgment. Don’t assume the answer is the same as it used to be. In this episode, PwC partners Heather Horn and Pat Durbin discuss five things you need to know about assessing collectibility under the new revenue standard, with a specific focus on recognizing revenue when customers are in financial distress or bankruptcy. We discuss:
- 0:52 – The collectibility model: credit risk v price concession
- 3:30 – The implications of the new credit risk model
- 6:53 – Judgment points in the model/when to reassess
- 9:30 – Factors to consider and document in the assessment
- 12:02 – Other considerations
Recognizing revenue for customers in financial distress
View or download our flowchart.
Contact us
Follow us
Featured topics
COVID-19 - Accounting and reporting resource center
Acquisitions and strategic investments
Compensation and benefits accounting
Corporate turnarounds and impairments
Derivatives and hedge accounting
Fair value measurement
Financial instruments
IFRS in the US
Income tax and tax reform
Insurance contracts
Lease accounting
Not-for-profit accounting
Private company accounting
Revenue recognition issues
Year-end financial reporting
© 2016 - 2020 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.