A company must account for a contract modification as a new contract if
A)Goods or services are interdependent on each other.
B)The promised goods or services are distinct.
C)The company has the right to receive consideration equal to standalone price.
D)Goods or services are distinct and company has right to receive the standalone price.

Question

Quizplus · Accepted Answer

A contract modification is accounted for as a new contract if the goods or services are distinct and the company has the right to receive consideration that reflects the standalone selling price of those goods or services.

A Company Must Account for a Contract Modification as a New