Do you have questions you would like answered by your peers in the proformative community?

Jeff Campbell Financial Consultant

Milestone Payments

Asked on April 10, 2015

The agreement has multiple milestone payments. The determination of the payment schedule was to improve cash-flow on the project. The amount of the payments do not represent the value provided. The customer has signed off and paid several of the milestones as the project has progressed. What literature issued by FASB that I can point to establish the proper accounting and revenue recognition. ASC 605-25 does not apply. I can not find a compelling example in SAB #104. Would appreciate your feedback and guidance. Thank you.