COVID-19 impacts on arrangements with customers
Hot Topic | March 2020
Potential impacts on accounting for arrangements with customers, including revenue, inventory and other related costs.
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
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Resource
Handbook: Revenue recognition
Latest edition: Our in-depth guide to the revenue standard, ASC 606.
Financial reporting impacts of COVID-19
Guidance, updates and news covering financial reporting impacts of COVID-19
Meet our team
Meredith Canady
Partner, Dept. of Professional Practice, KPMG US
Meredith Canady
Partner, Dept. of Professional Practice, KPMG US