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PwC partners Heather Horn and Angela Fergason discuss the accounting for contract costs under the new revenue standard.
With all the attention on the pervasive impacts of the new revenue standard (ASC 606), some may have overlooked the new guidance on accounting for the costs related to contracts with customers. Heather Horn is joined by PwC partner Angela Fergason to help navigate the guidance and address some of the questions we’ve been receiving.
Topics include:
  • 0:50 - Scope. We begin by discussing the types of costs covered by the guidance and how to navigate the accounting.
  • 3:22 - Costs to obtain a contract. Angela expands on the types of costs associated with signing a new customer contract and the common expenses that meet the criteria for capitalization.
  • 8:32 - Costs to fulfill a contract. Once the contract has been obtained, then what? Angela and Heather discuss the types of costs related to fulfilling a contract and when those costs may be capitalized.
  • 14:59 - Day 2 accounting. After laying the groundwork for what qualifies for capitalization under the standard, Angela fills us in on how to think about the amortization period.
  • 23:54 - Disclosures. Angela explains what companies should be thinking about in terms of disclosures regarding contract costs.

About our guest
Angela Fergason is a partner in PwC's National Office with 20 years of experience specializing in accounting for revenue and employee compensation arrangements. She is  a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on Revenue and Stock-based compensation.
About our host
Heather Horn is PwC's National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

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