Assessing collectibility under ASC 606: 5 things you need to know

Determining when to recognize revenue under the new revenue standard for customers in financial distress or bankruptcy requires judgment. Don't assume the answer is the same as it used to be. In this episode, PwC partners Heather Horn and Pat Durbin discuss five things you need to know about assessing collectibility under the new revenue standard, with a specific focus on recognizing revenue when customers are in financial distress or bankruptcy. We discuss the collectibility model: credit risk v price concession, the implications of the new credit risk model, judgment points in the model/when to reassess, factors to consider and document in the assessment, and other considerations.

• 0:52 – The collectibility model: credit risk v price concession
• 3:30 – The implications of the new credit risk model
• 6:53 – Judgment points in the model/when to reassess
• 9:30 – Factors to consider and document in the assessment
• 12:02 – Other considerations

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Chapters

• 0:52 The collectibility model: credit risk v price concession
• 3:30 The implications of the new credit risk model
• 6:53 Judgment points in the model/when to reassess
• 9:30 Factors to consider and document in the assessment
• 12:02 Other considerations