AT&T Inc. (T)
Analysis of Revenues
Accounting Policy on Revenue Recognition
As of January 1, 2018, AT&T adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as modified (ASC 606), using the modified retrospective method, which does not allow AT&T to adjust prior periods. AT&T applied the rules to all open contracts existing as of January 1, 2018, recording an increase of $2,342 to retained earnings for the cumulative effect of the change, with an offsetting contract asset of $1,737, deferred contract acquisition costs of $1,454, other asset reductions of $239, other liability reductions of $212, deferred income tax liability of $787 and increase to noncontrolling interest of $35.
Source: 10-K (filing date: 2019-02-20).
Revenues as Reported
AT&T Inc., Income Statement, Revenues
US$ in millions
|Operating revenues||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||AT&T Inc.’s operating revenues decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.|