A contract modification does not add distinct goods and services. How is the contract modification accounted for?
A) as a separate contract
B) prospective method
C) retrospective method
D) cumulative catch-up method

Question

Quizplus · Accepted Answer

When a contract modification does not add distinct goods or services, it is accounted for using the cumulative catch-up method, adjusting the transaction price and revenue recognized to date.

A Contract Modification Does Not Add Distinct Goods and Services