Contracts›NorthStar Order Form #2027-0481›Step 5 · Recognize revenue
3-yr · $1.1MAI live · Opus 4.7
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Recognize revenue
✓ RECOGNITION PATTERN SET · 36 MONTHS

Step 5 · Recognize revenue when (or as) POs are satisfied

Per ASC 606-10-25-23, recognition occurs when (or as) the entity satisfies a PO by transferring control of the promised good/service to the customer. Each PO is evaluated against the three over-time criteria of ASC 606-10-25-27 — if any one is met, recognition is over-time; otherwise, point-in-time. The deterministic engine then generates the schedule. Σ schedule = $1,150,000 = contract TP ✓
Close cycle · post-recognition
Recognition complete · 9 stages from schedule to IR
Next: Schedule
ScheduleContract
Journal entriesContract
Contract costsContract
Disclosure packPeriod
MD&APeriod
Audit trailPeriod
Quality barPeriod
FilePeriod
IR · earningsPeriod
PO-1 · Over time
$28,000/mo
36 months ratable · monthly
PO-2 · Point in time
$84,400 once
Point-in-time at go-live · target Month 1
PO-3 · Over time
$1,600/mo
36 months ratable · monthly
1
Subscription license to NorthStar Platform
Over time · criterion (a) · time-elapsed
✓OVER TIME
Over-time test · ASC 606-10-25-27 · any one criterion = over-time
a
Customer simultaneously receives and consumes
"The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs."
✓TRIGGERS
b
Entity creates/enhances asset customer controls
"The entity's performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced."
◇NOT MET
c
No alternative use + right to payment
"The entity's performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date."
◇NOT MET
AI reasoning · Opus 4.7

SaaS subscription is a continuous service. The customer receives access to the platform every day; if the entity stopped performing, the customer would lose value immediately. This satisfies criterion (a). Measure of progress is time-elapsed (straight-line monthly) because the value transferred is constant per period — no usage-based or milestone-driven components to drive a different measure.

Pattern
Over time
Measure of progress
time-elapsed
Per-period amount
$28,000
judgment_id 018f2a4b7c80…View in audit trail →
2
Onboarding implementation services
Point-in-time · control transfers at go-live
◐POINT IN TIME
Over-time test · ASC 606-10-25-27 · any one criterion = over-time
a
Customer simultaneously receives and consumes
"The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs."
◇NOT MET
b
Entity creates/enhances asset customer controls
"The entity's performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced."
◇NOT MET
c
No alternative use + right to payment
"The entity's performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date."
◇NOT MET
AI reasoning · Opus 4.7

Onboarding services are delivered as a one-time milestone. The customer obtains control on go-live (acceptance per §4) — they receive a configured environment, migrated data, and SSO integration. None of the three over-time criteria are met: customer cannot consume during configuration, no asset with customer-controlled WIP, and the configuration could be redirected to another customer with re-work. Recognize at point-in-time on customer go-live.

Pattern
Point in time
Control transfer
Customer go-live · §4 acceptance
One-time amount
$84,400
judgment_id 018f2a4b7c80…View in audit trail →
3
Premium support tier (24×7)
Over time · criterion (a) · time-elapsed
✓OVER TIME
Over-time test · ASC 606-10-25-27 · any one criterion = over-time
a
Customer simultaneously receives and consumes
"The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs."
✓TRIGGERS
b
Entity creates/enhances asset customer controls
"The entity's performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced."
◇NOT MET
c
No alternative use + right to payment
"The entity's performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date."
◇NOT MET
AI reasoning · Opus 4.7

Premium support is a stand-ready obligation. Customer receives readiness benefit every day regardless of whether they file tickets. Satisfies criterion (a). Time-elapsed measure of progress because the obligation is evenly distributed across the term — the entity bears the same cost-of-readiness in any month.

Pattern
Over time
Measure of progress
time-elapsed
Per-period amount
$1,600
judgment_id 018f2a4b7c80…View in audit trail →
Boundary checks · Step 5 also evaluates these
Bill-and-hold (4-criteria)ASC 606-10-55-83 to 55-86
No physical product is held by the entity on customer's behalf. The 4-criteria checklist (substantive reason, separately identified, ready for transfer, no alternative use) does not apply to SaaS.
✓N/A · digital delivery
Customer-acceptance gatingASC 606-10-25-30
Per §4: "Customer has 5 business days to dispute. Acceptance not unreasonably withheld." The 5-day window is short relative to subscription term and historical acceptance rate is 99.7% — the clause is treated as perfunctory for PO-1 (subscription) but substantive for PO-2 (onboarding go-live).
✓Substantive · perfunctory delta < 5%
Loss-contract provisioningASC 605-35 carryforward (US GAAP) · IAS 37 (IFRS)
Estimated total cost to provide $328k vs $1.15M revenue = 71.5% gross margin. No onerous-contract provision required. IFRS dual-mode: same conclusion under IAS 37.
✓Not loss-making
Modification trigger watchASC 606-10-25-10 to 25-13
No change orders or amendments received in the modification queue. If/when a modification arrives, the schedule re-runs through the decision tree (see screen 6).
✓No active modification
Schedule preview · first 12 of 36 months
✓Σ = $1.1M ✓
MonthSubOnboardSupportTotal
M01 · Jan 2027$28,000$84,400$1,600$114,000
M02 · Feb 2027$28,000—$1,600$29,600
M03 · Mar 2027$28,000—$1,600$29,600
M04 · Apr 2027$28,000—$1,600$29,600
M05 · May 2027$28,000—$1,600$29,600
M06 · Jun 2027$28,000—$1,600$29,600
M07 · Jul 2027$28,000—$1,600$29,600
M08 · Aug 2027$28,000—$1,600$29,600
M09 · Sep 2027$28,000—$1,600$29,600
M10 · Oct 2027$28,000—$1,600$29,600
M11 · Nov 2027$28,000—$1,600$29,600
M12 · Dec 2027$28,000—$1,600$29,600
··· 24 additional months follow the same pattern ···
Generate full 36-month scheduleMaterializes deterministic schedule · 6 tabbed views · journal-entry generation