Easily Remove Calculations in the Accounting Contract

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How to Remove Calculations in the Accounting Contract

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hello welcome to accounting hub im professor george skype pag in accounting and our topic today is accounting for long term contract periodic losses this is one of the hardest topics of revenue recognition long-term contract and we have three possible scenarios profitable contract profitable contract but with periodic losses that is our video today and a long-term contract with an overall loss so we have three videos about a long-term contract and they are in our video description okay so long-term country it is a special case of revenue recognition we have the five stacks and by the way we have some videos about revenue recognition as well identified a contract no problem at all we have the long term contract performance obligation usually it is a single performance obligation for instance construction and or okay lets construct an office building and then we have a single performance of a performance obligation because we need to deliver the building transaction price cool it usual

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Is consideration necessary for modifying a contract under law?

In general, consideration is one of the essential requirements that both parties must provide before a contract can be binding (some types of contracts are excepted, however). Also, if one party wants to make modifications to the original contract, they must also furnish adequate consideration.

What can replace consideration?

synonyms for consideration application. attention. debate. deliberation. discussion. examination. review. scrutiny.

What types of changes are suitable for contract modifications?

Contract modifications are of the following types: (a) Bilateral. (1) Make negotiated equitable adjustments resulting from the issuance of a change order; (2) Definitize letter contracts; and. (3) Reflect other agreements of the parties modifying the terms of contracts. (b) Unilateral. (1) Make administrative changes;

Can a contract be modified without consideration?

A contract, either oral or written, may be modified by a subsequent agreement which is supported by legally sufficient consideration, or a substitute therefor, and meets the requirements for contract formation.

Can a contract be modified without new consideration?

Thus, under common law rules, parties who wish to modify a contract will need to provide new consideration (i.e., something of value).

Can consideration be modified in a contract?

Under common law, a party to a contract needs new consideration -- something of legal value -- to modify a contract. The party obtains new consideration by negotiating with the other party to change the consideration on both sides of the contract.

How do you account for contract modifications?

A contract modification that only affects the transaction price is either accounted for prospectively or on a cumulative catch-up basis. It is accounted for prospectively if the remaining goods or services are distinct. There is a cumulative catch-up if the remaining goods or services are not distinct.

What are the 3 requirements of consideration?

In order to form a valid contract, consideration must meet the following conditions: It must be something worth bargaining for. It must benefit all the parties to the contract. It must be something of value.

What is a contractual modification?

A contract modification (mod) is any written change by the contracting officer to the contract terms and conditions. A mod can be issued at any time after the contract is awarded.

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