Under ASC 606, the transaction price generally should be adjusted for the effect

Question

Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B. The selling price of the product and the consideration promised in the contract differ significantly. C. The time between the payment and the delivery of the promised goods in the contract to the customer is 6 months. D. After the customer is billed, it has 2 years to request a delivery of the goods. Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B. The selling price of the product and the consideration promised in the contract differ significantly. C. The time between the payment and the delivery of the promised goods in the contract to the customer is 6 months. D. After the customer is billed, it has 2 years to request a delivery of the goods.

Explanation / Answer

Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when The selling price of the product and the consideration promised in the contract differ significantly. Option B is correct

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