USA Do you defer Cogs if you Defer Revenue?

[marino]

If we are selling a product to a company, but we recognize the revenue on the contract period 12 months.

Do we also do the same for cogs?

Thanks!

 

[kirby]

Too terse. Need some info on the details.

 

[marino]

We have a subscription service where some revenue is recognized over the term of the contract. Would I also defer cogs so it is recognizable over that same term?

 

[kirby]

No. No special deferral. Record current period expenses in the current period and record depreciation and amortizations as required.

 

[marino]

thank you