What Vanward calculates
Deferred commission assets, amortization, impairment and current portions.
The method
- Spread commission cents over the selected benefit months using changes in cumulative rounded cost. The last month takes the residual.
- When the elected practical expedient applies to a benefit period of twelve months or less, expense the cost immediately. On cancellation, impair the remaining balance before that month's amortization. Calculate the current portion from the next twelve months.
What the company decides
Qualifying incremental costs, contract and renewal terms, benefit period, cancellation dates and practical expedient election. These inputs and judgments are outside the guarantee.
Where it shows in Vanward
Sales commissions schedule, memo and proposed entries.
Method change log
- 2026-11-09 · 1.0 published