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Intermediate

SaaS: ASC 340-40 Commissions Capitalization

Amortizes sales commissions over the expected customer life.

Draft a policy memo for {company_name} regarding the capitalization of sales commissions under ASC 340-40. Based on an average customer contract life of {years} years, calculate the monthly amortization for {commission_paid} in commissions paid in Q1. Explain the 'Practical Expedient' for contracts under 1 year.

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Details

๐Ÿ’ฐ

Category

Tax

Sales Tax & VAT

Tested With

โœ“ GPT-4oโœ“ Claude 3.5 Sonnet

Tags

#SaaS#Sales Tax#GAAP

Added

6m ago

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