Accounting for Commissions and Other Contract Costs Under ASC 606
Under ASC 606 and ASC 340-40, the costs of obtaining a contract are recognized as assets. Certain costs, such as commissions, need to be capitalized. In this webinar, Matt Svetich of Effectus Group will discuss what to consider preparing for the commission accounting changes. This webinar will review methods for estimating commission amortization as well as supporting audit requirements.
You’ll learn how to:
- Identify costs of obtaining contracts, such as sales commissions.
- Handle capitalization of commissions with clawback provisions.
- Determine the amortization period of capitalized costs.