Internal Controls
Which is the threshold for aged invoices?
The following Paragraph are refering to which AP: " If a contract with multiple deliverables is less than US$1 million, the contract should be accounted for under the method required for the predominant deliverable which is generally As Earned Based on the Ability to Bill."
AP200
When the fees are considered Constrained or not constrained?
Variable fees are not constrained if it is probable that we will not reverse a significant amount of cumulative revenue recognized once the uncertainty is resolved at a future date.
Quien tiene el inflador animico?
We received a deal for a total US$1.2 million , consists of two segments;Cosnulting part has a RFV of US$800,000 and Outsotucing deliverable has a RFV of US$400,000.
Are this contract need to be segmented? Why?
This contract would not be segmented as the RFV of the second deliverable falls under the US$500,000 threshold for segmentation.
Requirements for Deferred EAC Changes
1)Explanation of the variance and why the EAC Change per P201/202 is not processed in SAP must be documented and approved by Contract Accenture Leader by Day+2.
2) Depending on revenue recognition method (PoC/As Earned) and value of the deferred EAC change (please see details in the table below), CPFL (NOT applicable for PoC), APFL and/or OG FD Approval to not process the EAC Change needs to be obtained together with:
For PoC: Not Approved/Not Processed EAC Change template that needs to be sent to APFL or OG FD with the approval request (Day+2 approval due date).
Which costs are considering in the PoC calculation? Mention almost 4.
◾Unloaded Payroll
◾Principal Subcontractor Costs
◾Technology Service Charges
◾Certain Other Usage Charges
◾Performance Bond premiums
◾Solution Center Seat Charges
◾Human Resources Services Charges
Definition of Outcome Fees and Volume Fees
Outcome:Fees that a customer is obligated to pay or Accenture becomes obligated to refund upon the occurrence or non-occurrence of a future event
Volume:Fees vary based on the amount of underlying costs, output, resources or comparable drivers.
Quien tiene tatuajes en el equipo?
- Eli
-Tony
-Pablo
We are documented an IC contract. At the time to complete the ALCO Control#3 we noticed that we have the following documentation:
2) SoW1: signature date 04/05
3) SoW2: Signature date 04/05
4) SoW3 Signature date 04/20
How the ALCO should be completed?
The SOW1 shoul be considered the original Sale booked and the rests have to be listed as CM
When anformal ATM is required?
a) Any new opportunity with contract revenue greater than US $10 million;
b) An existing contract that did not meet the threshold for an ATM at signature but has subsequently been modified. Regardless of the amount of modification to the contract, if the modification causes the contract to have a backlog that exceeds US $10 million, an ATM is required.
c) An ATM should also be prepared for contracts not meeting the threshold in a) that have characteristics requiring more complex accounting treatment (e.g., segmented contracts, contingent revenues, capitalized costs, sales
Based on AP 201, when a contract include a Benchmarking provision, the contract refer to?
A benchmarking provision is a contractual clause that gives the customer an opportunity to compare the Company’s fees to competitors’ fees in order to assess whether the Company’s fees are at fair market value at a specific point or after a specified period of time. Once renegotiations resulting from a benchmarking provision occur, the fees may no longer be considered Fixed or Determinable and, as a result, the revenue recognition method of the contract may change on a prospective basis.
When a Variable Fees is considere with a Binary range of outcome and when with more than free?
Internal policy will define a “large number and broad range” to be more than two outcomes (e.g."$0, $50K, $100K or $200K").
Quien tiene mas antigüedad en CFM CS PRD NA?
While CFM is reviewing a POC deal, the Client team confirm that they want to release some of the SC. Therefore, the final MME present the following scenario:
*Current CTD PoC Adj. -73K
*Processed CTD PoC Adj: 51K
COnsidering the above, is the CFM need to request any approval to be compliance with AP202? Why?
Yes , approval is required tonNot Processed CTD PoC Adj.
in current month based on Adjusted EAC.
EUC Threshold
If your contract is over the EUC threshold (PoC $2m/quarter or $8m/FY or As Earned $4m/quarter or $16m/FY), the CFM team also confirms that the tools which are used to calculate the EAC (Estimate at Completion)
Definition of MC Work
Management Consulting provides offerings to help clients design and implement business and technology-driven change and to realize the business benefits of such transformation. Work will include the design and implementation of new business processes, organization structures and programs related to the effectiveness of resources in an organization.
Under the new revenue standar method when is considered a Series and Stand Ready obligation?
Serie: deliverable to provide monthly claims processing services over 5 years. Each day of service represents progress towards completing the monthly deliverable.
Stand Ready obligations: deliverable comprised of a series of monthly claims processing services (unspecified amount of claims) delivered over multiple years
9- Gianluca
26- Juli
14- Mari
10 Anto
25- Pablo
I have 3 BPO Level 1 WBS, does that mean I have 3 Accounting Deliverables?
Segmentation (e.g. accounting deliverables) is determined by applying guidance in Policy 200 and is not driven by Level 1 WBSEs, Service Group reporting, or billing streams.
What are the new requirements in the Internal Controls Checklist for CFM related to the New Revenue Standard?
CFM is on point to answer questions on the "New Revenue Standard" tab and the "Variable Fees" tab for contracts in scope for the New Revenue Standard. The new tab is required for every contract that meets the New Revenue standard backlog threshold of $5M, even if the contract does not meet the Internal Controls threshold to complete the full IC checklist.
Mention 2 of the minimus requirements that a conatract need to be considere in order to be cover by AP 1370?
*Out of pocket costs
*Un-recovered investments
*The largest of Deferred margin or Break Fee Penalty
Under the New Strandar Revenue process, which are the new requirements that need to be considered to calculate the RFV ?:
Determine if accounting deliverables are priced at approximately fair value, meaning:
*margin priced is +/- 10% of published FV margins,
OR
*discount/premium for all deliverables is consistent (within +/- 10%).*
Quienes son los 5 mas jovenes del equipo?
-Eli
-Facu
-Monti
-Lucho
We havereceived a new contract which the following characteristics:
*T&M component with monthly billings plus a FF component with quarterly billings, not subject to approval
* proper termination provisions .
* Measure of Progress. AE - Ability to Bill for T&M + Straighline for FF
Considering the new revenue standar, which is the properly revenue recognition method?
PoW (if it doesn't qualify for Series and Stand Ready obligation; if it does it would be AE - OT with "Time" as Measure of Progress)