{
  "tool_id": "art-265-amortize-asc606-commissions",
  "note": "ASC 340-40 commission amortization: practical expedient for <=12mo contracts, long-term combined treatment.",
  "vectors": [
    {
      "name": "expedient_6mo_contract",
      "description": "6-month contract: apply_expedient=true (ASC 340-40-25-4), amortize $12,000 over 6 months = $2,000/mo.",
      "policy_parameters": {
        "incremental_cost": 12000,
        "contract_term_months": 6,
        "renewal_commensurate": false
      },
      "output_payload": {
        "apply_expedient": true,
        "amortization_period_months": 6,
        "monthly_amortization": 2000,
        "annual_amortization": 24000,
        "total_amortization_periods": 6,
        "renewal_treatment": "EXPEDIENT",
        "incremental_cost_test_passed": true,
        "impairment_flag": false,
        "carrying_amount": 12000,
        "asc340_40_compliant": true,
        "table_version": "ASC340-40-COMMISSION-AMORTIZATION-V2023",
        "table_source": "ASC 340-40 (Other Assets and Deferred Costs -- Contracts with Customers): incremental cost of obtaining a contract, practical expedient <=12 months, renewal-commensurate test, impairment. ASC 606 (Revenue from Contracts with Customers).",
        "regulatory_basis": "ASC 340-40-25-1: incremental costs to obtain a contract recognized as assets. ASC 340-40-25-4: practical expedient to expense if amortization period <=1 year. ASC 340-40-25-3: renewal-commensurate commissions amortize over original contract term. ASC 340-40-35-1: impairment test required. FASB ASU 2014-09. ZERO PII: cost amounts and contract terms only.",
        "pii_note": "ZERO PII: numeric cost and term inputs only. No agent name, SSN, NPN, contract party, or personal data enters this kernel.",
        "not_legal_advice": "Not accounting or legal advice. ASC 340-40 amortization analysis must be reviewed by qualified CPAs and auditors. This output is for structural analysis only."
      },
      "golden_hash": "184c624a724330a25b9a8b83735d008d380747cb0126c369d8c1c8d262774a83"
    },
    {
      "name": "long_term_combined_36mo",
      "description": "36-month non-commensurate contract: apply_expedient=false, COMBINED treatment, $48,000 over 36 months = $1,333.33/mo.",
      "policy_parameters": {
        "incremental_cost": 48000,
        "contract_term_months": 36,
        "renewal_commensurate": false
      },
      "output_payload": {
        "apply_expedient": false,
        "amortization_period_months": 36,
        "monthly_amortization": 1333.33,
        "annual_amortization": 15999.96,
        "total_amortization_periods": 36,
        "renewal_treatment": "COMBINED",
        "incremental_cost_test_passed": true,
        "impairment_flag": false,
        "carrying_amount": 48000,
        "asc340_40_compliant": true,
        "table_version": "ASC340-40-COMMISSION-AMORTIZATION-V2023",
        "table_source": "ASC 340-40 (Other Assets and Deferred Costs -- Contracts with Customers): incremental cost of obtaining a contract, practical expedient <=12 months, renewal-commensurate test, impairment. ASC 606 (Revenue from Contracts with Customers).",
        "regulatory_basis": "ASC 340-40-25-1: incremental costs to obtain a contract recognized as assets. ASC 340-40-25-4: practical expedient to expense if amortization period <=1 year. ASC 340-40-25-3: renewal-commensurate commissions amortize over original contract term. ASC 340-40-35-1: impairment test required. FASB ASU 2014-09. ZERO PII: cost amounts and contract terms only.",
        "pii_note": "ZERO PII: numeric cost and term inputs only. No agent name, SSN, NPN, contract party, or personal data enters this kernel.",
        "not_legal_advice": "Not accounting or legal advice. ASC 340-40 amortization analysis must be reviewed by qualified CPAs and auditors. This output is for structural analysis only."
      },
      "golden_hash": "ade6a808af765d6b1109ff53dec2d1bb58e100304052eed51af2e12d8967aa8f"
    }
  ]
}