UK Capitalization of commission expenses


mgr

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hi - this is new - asc606 adoption. i understand the commissions that are paid upfront upon signing and also get capitalization happens only on recoverable and incremental costs. a company i work for pay commissions based on their revenue - every month. my question is - is this commission that is paid monthly based on their saas activity or subscription activity to be capitalized under 606? reason i am asking this - revenue and commission costs are recognized in that month - matching principle. can anyone help? thank u
 
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kirby

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If the commission is paid for and based on current month activity, then what is the period of deferral?
Answer - none. So no capitalization.
 

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