OpenChainGraph Suite · ART-265 · Revenue Operations
ASC 340-40 Commission Amortization
Applies the ASC 340-40 incremental cost of obtaining a contract standard to commission amortization. Applies the practical expedient (ASC 340-40-25-4) for contracts of 12 months or less, tests renewal commensurateness (ASC 340-40-25-3), and flags impairment indicators (ASC 340-40-35-1). Outputs monthly and annual amortization amounts, renewal treatment, and FASB ASU 2014-09 compliance status.
🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only. This tool accepts numeric cost amounts and contract term lengths only.
Contract Commission Parameters
Total incremental commission cost to obtain the contract (ASC 340-40-25-1). Must be incremental: earned only on a new contract, not renewal of existing.
Initial contract term in months. ≤12 months triggers the ASC 340-40-25-4 practical expedient (expense immediately).
If YES, renewal commissions are commensurate with the original (ASC 340-40-25-3): amortize over the original contract term only.
Any ASC 340-40-35-1 indicators that carrying amount may not be recoverable.