Hot Topic | March 2020

 

Accounting impacts of COVID-19 on arrangements with customers

The economic and financial markets effects of the COVID-19 outbreak may have a number of impacts on companies’ accounting for arrangements with customers. This article addresses how uncertainties in customer demand and the disruption to supply chains, manufacturing and workforce capabilities may impact companies’ revenue and inventory accounting.

Applicability

  • All companies

Relevant dates

  • Effective immediately

Report contents

  • Variable consideration
  • Customer credit risk
  • Contract modifications
  • Stand-alone selling prices
  • Inventory
  • Contract costs
  • Other customer incentives and estimates
  • Disclosures
  • Subsequent events

 

Spotlight on contributors

Brian Allen

Brian Allen

Partner, Dept. of Professional Practice, KPMG US

Meredith Canady

Meredith Canady

Partner, Dept. of Professional Practice, KPMG US

 

 

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