Accounting Contract: Step 1: Identify the Contract

Order Detail Selling Prices and Allocation

Source Customer Standalone

Document Source POB Number Item Quantity UOM Facing Price Selling Price
Date Reference (CFP) SSP (per Unit)

Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as bas

Step 3: Determine the Transaction Price Total CFP:

Transaction
Transaction total and Estimated Consideration Estimate

Total Standalone Selling Price Allocation Baseline and Relativity

Allocation Performance Obligation Attributes

Extended Revenue / POB Allocation Point in Either party Initial

Standalone Relativity: Value Discount Time or Over Acts Date Initial Performance
Selling Price CFP / Total SSP (SSP * Relativity) (Rev minus Time Performance Event
CFP)

he Transaciton Price using SSP as basis Step 5a: Accrue the Obligation

Revenue Total:
Total SSP: Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration

Relativity equals Total Customer Facing Price divided by total SSP, adjusted fo
Can be over or under 100%
s Invoicing Other

Estimated Other
Transfer to Revenue Event Billing Plan Necessary
Customer Date Data

Step 5b: Recognize Revenue

Revenue & Performance Obligation Total

Facing Price divided by total SSP, adjusted for exceptions.

Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation

Source Extended Standalone

Document Source POB Number Item Quantity UOM Customer Selling Price
Date Reference Facing Price SSP (per Unit)
(CFP)

Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as bas

1-Jan-16 1001 iPhone 7 1 Each 540 700

1-Jan-16 1002 Voice Plan 3 Month 360 100

Step 3: Determine the Transaction Price Total CFP:

Transaction
Transaction total and Estimated Consideration Estimate

Total Standalone Selling Price Allocation Baseline and Relativity 900

Allocation Performance Obligation Attributes

Extended Revenue / POB Allocation Point in Either party Initial Estimated

Standalone Relativity: Value Discount Time or Over Acts Date Initial Performance Transfer to
Selling Price CFP / Total SSP (SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)

he Transaciton Price using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue

700 0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16

mobile
Activated 01-Jan-16 to
300 0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16

Revenue Total:
Total SSP: Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration

Relativity equals Total Customer Facing Price divided by total SSP, adjusted for e
1000 0.9 900 0 Can be over or under 100%
 Invoicing Other

Other
Revenue Event Billing Plan Necessary
Data

Step 5b: Recognize Revenue

Handed over Immediate

mobile
Service Month
Delivery OT End

rmance Obligation Total

ed by total SSP, adjusted for exceptions.

Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation

Source Extended Standalone Extended

Document Source POB Number Quantity UOM Customer Selling Price Standalone
Date Reference Facing Price SSP (per Unit) Selling Price
(CFP)

Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as basis

1-Jan-16 1001 1 Each 540 700 700

1-Jan-16 1002 3 Month 360 100 300

Step 3: Determine the Transaction Price Total CFP:

Transaction Total SSP:
Transaction total and Estimated Consideration Estimate

Total Standalone Selling Price Allocation Baseline and Relativity 900 1000

Accounting
Balance Sheet Asset
Date Event Accounting Event in RMCS
Cash Receivable

1-Jan-16 Handed Over Mobile Initial Performance

1-Jan-16 Handed Over Mobile Performance Obligation Satisfied
1-Jan-16 Handed Over SIM Initial Performance
31-Jan-16 End of the Month Performance Obligation Satisfied
28-Feb-16 End of the Month Performance Obligation Satisfied
31-Mar-16 End of the Month Performance Obligation Satisfied
0 0
 Performance Obligation Attributes

Revenue / POB Allocation Point in Either party Initial Estimated

Relativity Value Discount Time or Over Acts Date Initial Performance Transfer to Revenue Event
(SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)

rice using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue

0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16 Handed over

mobile mobile
Activated 01-Jan-16 to Service
0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16 Delivery OT

Revenue Total:
Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration

Relativity equals Total Customer Facing Price divided by total SSP, adjusted for exceptions.
0.9 900 0 Can be over or under 100%

Income
Balance Sheet Asset Balance Sheet Liability
Statement

Clearing Contract Contract Contract Revenue

Asset Liability Discount
630 -630
630 -630
270 -270
90 -90
90 -90
90 -90
0 900 0 0 -900
 Invoicing Other

Other
Billing Plan Necessary
Data

Immediate

Month
End

n Total

djusted for exceptions.

Accounting Contract: 10020 Step 1: Identify the Contract
Order Detail Selling Prices and Allocation

Source Extended Standalone Extended

Document Source POB Number Quantity UOM Customer Selling Price Standalone
Date Reference Facing Price SSP (per Unit) Selling Price
(CFP)

Step 2: Identify the Performance Obligations Step 4: Allocate the Transaciton Price using SSP as basis

1-Jan-16 1001 1 Each 540 700 700

1-Jan-16 1002 3 Month 360 100 300

Step 3: Determine the Transaction Price Total CFP:

Transaction Total SSP:
Transaction total and Estimated Consideration Estimate

Total Standalone Selling Price Allocation Baseline and Relativity 900 1000

Accounting
Balance Sheet Asset
Date Event Accounting Event in RMCS
Cash Receivable

1-Jan-16 Handed Over Mobile Initial Performance

1-Jan-16 Handed Over Mobile Performance Obligation Satisfied
AR Invoice Accounted 540
AR Receipt Accounted 540 -540
Billing Data Loaded into RMCS Performance Obligation Billed
1-Jan-16 Handed Over SIM Initial Performance
31-Jan-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
28-Feb-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
31-Mar-16 End of the Month Performance Obligation Satisfied
AR Invoice Accounted 120
AR Receipt Accounted 120 -120
Billing Data Loaded into RMCS Performance Obligation Billed
900 0
 Performance Obligation Attributes

Revenue / POB Allocation Point in Either party Initial Estimated

Relativity Value Discount Time or Over Acts Date Initial Performance Transfer to Revenue Event
(SSP * Relativity) (Rev minus Time Performance Event Customer Date
CFP)

rice using SSP as basis Step 5a: Accrue the Obligation Step 5b: Recognize Revenue

0.9 630 90 PIT 1-Jan-16 Handed over 1-Jan-16 Handed over

mobile mobile
Activated 01-Jan-16 to Service
0.9 270 -90 OT 1-Jan-16 SIM 31-Mar-16 Delivery OT

Revenue Total:
Relativity (%): Expected Discount Total: Customer facing total must equal Revenue & Performance Obligation Total
Must be Zero
Consideration

Relativity equals Total Customer Facing Price divided by total SSP, adjusted for exceptions.
0.9 900 0 Can be over or under 100%

Income
Balance Sheet Asset Balance Sheet Liability
Statement

Clearing Contract Contract Contract Revenue

Asset Liability Discount
630 -630
630 -630
-540

540 -630 90
270 -270
90 -90
-120

120 -90 -30

90 -90
-120

120 -90 -30

90 -90
-120

120 -90 -30

0 0 0 0 -900
 Invoicing Other

Other
Billing Plan Necessary
Data

Immediate

Month
End

n Total

djusted for exceptions.