When contract modification occurs, and the company determines a new contract and performance obligation has resulted,
A) the accounting for the original contract must be modified to reflect the new contract.
B) the original contract remains the same.
C) the new contract must be recorded separately.
D) Both B and C are correct.

Question

Quizplus · Accepted Answer

When a new contract and performance obligation result from a contract modification, the original contract remains unchanged, and the new contract is recorded separately.

When Contract Modification Occurs, and the Company Determines a New