Revenue Recognition Bill And Hold

Insights bill and hold arrangements under the new revenue recognition guidance david fontes february 19 2018 a bill and hold arrangement is a contract under which a company bills a customer for a product but retains physical possession of the product until it is transferred to the customer at a point in time in the future.

Revenue recognition bill and hold. An entity that has transferred control of the goods and met the bill and hold criteria to recognize revenue needs to consider whether it is providing custodial services in addition to selling the goods. There have been many scandals surrounding a bill and. This means that revenue can t be recognized by the seller and no assets or inventory can be recorded by the buyer related to this transaction. Those are the key considerations.