Unraveling the accounting for collaborative arrangements

PwC's accounting podcast

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We conclude our revenue miniseries with an episode on collaborative arrangements, which has its own guidance (ASC 808, Collaborative Arrangements) but also often interacts with other guidance, including that on revenue from contracts with customers.
In this episode, we discuss:

• 4:55 – Criteria to meet the definition of a “collaborative arrangement”
• 16:20 – An overview of the collaborative arrangement accounting model
• 20:27 – Application of an accounting policy for recognition and presentation
• 25:04 – Timing of recognition, presentation, and disclosure
• 32:42 – Other areas of GAAP that may apply to the arrangement

For more information, see section 2.4.1 of our Revenue guide. Also, check out other episodes in our miniseries: Modifying a contract? Your revenue recognition may change, Gross versus net revenue: Is your company the principal or agent?, and Identifying the contract – The first step in recognizing revenue. Additionally, follow this podcast on your favorite podcast app for more episodes.
Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies.
Christine Moore is a director in PwC’s Deals practice, advising audit and non-audit clients on complex accounting and financial reporting matters. She recently completed a tour with the National Office where she advised on revenue arrangements for public and private companies across various industries, with a focus on companies in the pharmaceutical and life sciences industry.
Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s quarterly webcast series.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [e-mail].

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1. Unraveling the accounting for collaborative arrangements (00:00:00)

2. Criteria to meet the definition of a “collaborative arrangement” (00:04:55)

3. An overview of the collaborative arrangement accounting model (00:16:20)

4. Application of an accounting policy for recognition and presentation (00:20:27)

5. Timing of recognition, presentation, and disclosure (00:25:04)

6. Other areas of GAAP that may apply to the arrangement (00:32:42)