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SEC calls this round-tripping. ASC 606 requires commercial substance — if both parties just book offsetting transactions, auditors flag the net cash flow as zer
by clearstack 5mo ago
SEC calls this round-tripping. ASC 606 requires commercial substance — if both parties just book offsetting transactions, auditors flag the net cash flow as zero
- whatever1 5mo agooffsetting in what horizon? I give you 100 in q4 2026 you give me 100 in q1 2027
- skeeter2020 5mo agoThey're already ahead of you; you have to consistently book revenue (accrual or cash basis) which means they both go at the same time (which would offset) or that real money is being exchanged. You can't accrue the 100 you're (supposedly) giving me now and THEN accrue the 100 I'm giving you next year.
- bandrami 5mo agoYou could but the other guy would have to book 100 of goodwill in the interim, matched by me booking goodwill later, and that brings it's own problems
- duzer65657 5mo agoGoodwill almost always raises concern with authorities and audits, so I'd imagine so sort of quid pro quo version is equivalent to loudly yelling to be audited!
- RobotToaster 5mo agoWhat if they buy each other's NFTs instead?