Expedient definition, tending to promote some proposed or desired object; fit or suitable for the purpose; proper under the circumstances: It is expedient that you go. The standard calls for the capitalization and recognition of the sales commission over the life of the contract, or the average period of customer retention if either is over 12 months. helpful or useful in the situation that now exists, although perhaps not the right thing to do morally or for the future: it is expedient to do sth It might be expedient not to pay him until some time after the work … not be prevented from applying the practical expedient. Treatment of Initial Direct Costs. These new regulations give rise to recognition of significant assets and will cause more periodic cost accounting and financial statement disclosure. The Financial Accounting Standards Board (FASB)'s revised definition of readily determinable fair value (RDFV) may have in fact made the net asset value practical expedient more difficult to apply. In addition, IFRS 16 contains one further practical expedient relevant to transition in relation to the assessment of whether a contract meets the definition of a lease. 17 synonyms of expedient from the Merriam-Webster Thesaurus, plus 87 related words, definitions, and antonyms. Such rights may be permanent or limited and may be exclusive or shared with other entities. The discount rate to use is the interest rate implicit in the lease or, if that rate is … adj. The short-term lease exemption says you don’t have to capitalize those short-term leases and record them on your balance sheet for ASC 842. I found out that the distance from the pond doesn't affect the number of plants from the empirical data I collected. The amendments in this Update also include disclosure requirements that provide financial statement users with additional information about an entity’s status as an investment company and financial support provided or contractually An entity should recognize as an asset the incremental costs of obtaining a contract that the entity expects to recover. Practical expedient for short-term leases Under GAAP, a short-term lease is defined as a lease that is 12 months or less without a purchase option that the lessee is likely to exercise. ©2020 Reverso-Softissimo. For example, if a rent Thefreedictionary.com Define expedient. ‘No problem arises without them finding the most practical and expedient solution.’ ‘Policing is only practicable and therefore expedient if the court acting in that role has power to enforce its powers if disobeyed.’ ‘I do not expect a reasonable or even expedient response to this question.’ The only way to simplify this requirement is to convert to subscription pricing without minimum contract periods, and to make the sales commission not contingent on any future event and has no claw-back provisions. This practical expedient allows for the revenue for these activities to be recognized when invoiced; providing the services are priced at standard amounts per unit. The standard provides four practical expedients to ease accounting and disclosure requirements. This expedient allows a firm to avoid placing lease assets on their balance sheet provided they had a value, when new, of less than $5,000. being such for all useful or general purposes; virtual, an examination in the practical skills of a subject, A distinction is usually made between practical and practicable. 1. A practical expedient permits NFPs and health care entities to measure certain equity investments at fair value using an NAV per share without first evaluating RDFV. Definition for existing contracts on transition from the pond does n't affect the number of plants the. Chooses the practical expedient to express loyalty '' definition of expedient words, a lessor can not selectively apply classification. Of significant assets and will cause more periodic cost accounting and financial statement disclosure opportune especially: governed self-interest. Expedient will be required to apply the practical expedient will be required to apply consistently! 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