contract assets

[ˈkɒntrækt ˈæsets]
nounpl: contract assets
ativos contratuais
1. Assets recognized when a company has the right to receive consideration for goods or services transferred to a customer, but has not yet received payment or the right to payment is conditional on future performance
The company recognized contract assets when it completed the first phase of the project but payment was contingent on final delivery.
A empresa reconheceu ativos contratuais quando completou a primeira fase do projeto, mas o pagamento era condicionado à entrega final.
2. In accounting (IFRS 15 and ASC 606), a contract asset represents an entity's right to consideration in exchange for goods or services that have been transferred
Under IFRS 15, contract assets must be assessed for impairment at each reporting date.
Sob IFRS 15, os ativos contratuais devem ser avaliados quanto ao ajuste ao valor recuperável em cada data de relatório.
Contract assets are a fundamental concept in modern international accounting standards (IFRS 15 and ASC 606), implemented in Brazil through CPC 47. The term reflects the shift from revenue recognition based on payment received to recognition based on performance obligations fulfilled, making it essential in corporate finance and auditing discussions in both Brazilian and Anglo-American business contexts.
Synonyms / Sinônimos
receivables from contractsunbilled receivablesamounts due from customersconditional receivables
Antonyms / Antônimos
contract liabilitiespayables on contractsdeferred revenue

Regional Variations

General Brazilian
ativos contratuais
Standard accounting term used in Brazilian financial statements and CPC (Comitê de Pronunciamentos Contábeis) standards
São Paulo
ativos contratuais
Standard usage in major financial and corporate centers
Portugal
ativos contratuais
Same terminology under International Financial Reporting Standards (IFRS)
USA
contract assets
Regulated under ASC 606 (Revenue from Contracts with Customers)

Related Words

contract liabilitiesrevenue recognitionIFRS 15performance obligationsaccounts receivablerecognition criteria

Related Idioms & Phrases

right to consideration
performance obligation satisfied
contract asset impairment
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