OpenChainGraph Suite · ART-265 · Revenue Operations

ASC 340-40 Commission Amortization

Applies the ASC 340-40 incremental cost of obtaining a contract standard to commission amortization. Applies the practical expedient (ASC 340-40-25-4) for contracts of 12 months or less, tests renewal commensurateness (ASC 340-40-25-3), and flags impairment indicators (ASC 340-40-35-1). Outputs monthly and annual amortization amounts, renewal treatment, and FASB ASU 2014-09 compliance status.

Revenue Operations ASC 340-40 FASB ASU 2014-09 Practical Expedient Proofs Deferred
🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only. This tool accepts numeric cost amounts and contract term lengths only.
Contract Commission Parameters
Total incremental commission cost to obtain the contract (ASC 340-40-25-1). Must be incremental: earned only on a new contract, not renewal of existing.
Initial contract term in months. ≤12 months triggers the ASC 340-40-25-4 practical expedient (expense immediately).
If YES, renewal commissions are commensurate with the original (ASC 340-40-25-3): amortize over the original contract term only.
Any ASC 340-40-35-1 indicators that carrying amount may not be recoverable.
Amortization Detail
Execution Hash (SHA-256)

  







  

    
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Copy this paragraph into Claude, OpenClaw, or any MCP-aware agent to run this exact tool, with this sample, and verify the artifact.

  
Run the AINumbers MCP tool `amortize_asc606_commissions`. Task: Compute ASC 340-40-25-4 practical expedient (contract_term_months <= 12 -> expense immediately, apply_expedient=true) and full straight-line amortization schedules for longer-term capitalized incremental costs of obtaining a contract under ASC 606.
Call it with arguments: {"policy_parameters":{"incremental_cost":12000,"contract_term_months":6,"renewal_commensurate":false}}
Verify before trusting: call `verify_execution_hash` on mcp.ainumbers.co (https://mcp.ainumbers.co/mcp) with the parameter `claimed_hash` set to the returned `execution_hash`, passing the full artifact the run returned (the object containing `policy_parameters` + `output_payload` + `execution_hash`; equivalently `policy_parameters` + `output_payload` with `claimed_hash`), not the bare hash string.
Return the ledger link https://ledger.ainumbers.co/ so a human can re-verify without contacting us.
PII rule: All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only.
Open the tool with the sample prefilled: https://ainumbers.co/chaingraph/art-265-amortize-asc606-commissions.html#p=v1.H4sIAAAAAAAA_wFQAK__eyJpbmNyZW1lbnRhbF9jb3N0IjoxMjAwMCwiY29udHJhY3RfdGVybV9tb250aHMiOjYsInJlbmV3YWxfY29tbWVuc3VyYXRlIjpmYWxzZX1N9BkhUAAAAA