transaction-pricemonthly-rate
− Before
$300,000 (straight-line $100,000 / month)
+ After
$287,258 (Jan blended at $97,258; Feb–Mar at $95,000)
MOD-001 · effective 2026-01-15 · ASC 606-10-25-13(b)
Mid-term price reduction
ModificationProspective
Δ TCV$300,000 → $287,258
Δ Recognized$0 → $0
Cumulative catch-upNo catch-up
MaterialityBelow 5% threshold
Contract timelineQ1 2026 calendar
Master viewClause diff1 change
Schedule diff−$12,742 net · 3 of 3 periods changed
Commit
$100K$50K$0
JAN
FEB
MAR
Each period: old vs new · click any bar to trace provenance
Facts
Effective 2026-01-15, Acme Corp and the Company executed an amendment reducing the monthly Data Platform commit from $100,000 to $95,000 for the remaining contractual term. The amendment was signed mid-January 2026, before any full period had closed. Total contract value declines from $300,000 to $287,258, a reduction of $12,742 (4.2% of original TCV).
Treatment determination
The amendment does not add distinct goods or services and does not reflect standalone selling prices, so separate-contract treatment under 25-12 does not apply.1 The remaining services are distinct from those already transferred to the customer through 2026-01-14, satisfying 25-13(b);2 accordingly the modification is accounted for as a change in transaction price for the remaining performance obligations on a prospective basis. No revision of revenue recognized in prior periods is required.
Revenue schedule impact
Period 2026-01 reflects a blended rate of $97,258 (14 days at $100,000, 17 days at $95,000). Periods 2026-02 and 2026-03 recognize $95,000 per month.
Materiality assessment
The absolute change in TCV of $12,742 represents 4.2% of the original $300,000 commitment. This falls below the 5% threshold for the materiality flag and does not trigger restatement of any prior period. The change will be disclosed in the next quarterly contract activity summary.
Authoritative citations
- [1]ASC 606-10-25-12
- [2]ASC 606-10-25-13(b)