Accounting
How should I record the value of an asset, net of a customer’s partial payment?
When a customer pays part of the cost of an asset that will be owned by the enterprise, how should the enterprise determine the carrying amount of that asset? Should this customer participation payment be recognized as revenue or other income? Based on the current accounting framework, this article provides analytical guidance on the above issues.
Our customer is paying partially for an asset we will own. Should I record the value of the asset net of his participation?
If not, is this participation considered revenue or other income?
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