RFS assists technology companies with a broad range of technical accounting memos to support GAAP compliance, audit readiness, fundraising, and investor reporting. These memos help management document key judgments, structure financial statements properly, and ensure consistency across reporting periods. This list summarizes the common scenarios where RFS prepares memos for clients for clarity. Contact us for assistance.

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Revenue Recognition & Contracts (ASC 606, ASC 340)

1. SaaS Revenue Recognition
   Why it matters: Timing of revenue from subscriptions and multi-element arrangements.
   Memo includes: Identification of performance obligations, allocation of consideration, timing over contract term.
2. Usage-Based or Variable Consideration
   Why it matters: Uncertain pricing models require constraint estimates.
   Memo includes: Expected usage, methods for revenue estimation or deferral.
3. Principal vs. Agent
   Why it matters: Determines gross vs. net revenue presentation.
   Memo includes: Control indicators and transaction flow analysis.
4. Custom Contracts or Non-Standard Deals
   Why it matters: Unique terms can affect revenue timing or recognition.
   Memo includes: Detailed review of contract clauses, standalone pricing.
5. Refund Rights and Customer Incentives
   Why it matters: Can create refund liabilities or reduce revenue.
   Memo includes: Nature of rights, refund reserve modeling.
6. Sales Commissions / Costs to Obtain a Contract
   Why it matters: Capitalization required if amortized over benefit period.
   Memo includes: Criteria met, amortization schedule.
7. Deferred Revenue Breakage
   Why it matters: Breakage from unused credits or subscriptions can be recognized.
   Memo includes: Historic usage patterns, breakage estimate, and method.
8. Revenue from Token or Crypto Payment Models
   Why it matters: Accepting crypto as payment affects timing and classification.
   Memo includes: Spot rate usage, valuation of non-cash consideration.

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Equity, Financing & Instruments (ASC 718, ASC 480, ASC 815)

9. Stock-Based Compensation
   Why it matters: Expense recognition and classification for equity awards.
   Memo includes: Fair value assumptions, vesting conditions, modification terms.
10. Preferred Stock Classification
    Why it matters: Determines if it’s equity or liability.
    Memo includes: Redemption rights, dividends, liquidation preferences.
11. SAFE Instruments
    Why it matters: Typically require liability classification and fair value remeasurement.
    Memo includes: Terms analysis under ASC 480 and ASC 815.
12. Convertible Notes / Embedded Derivatives
    Why it matters: May require bifurcation and derivative treatment.
    Memo includes: Host instrument review, trigger clauses.
13. Warrants and Complex Equity Instruments
    Why it matters: May be liabilities or equity.
    Memo includes: Fixed-for-fixed test, fair value hierarchy, remeasurement policy.
14. EPS Calculations
    Why it matters: Diluted EPS affected by convertible instruments, options.
    Memo includes: Common stock equivalents, anti-dilution triggers.
15. Treasury Stock or Equity Repurchases
    Why it matters: Repurchases affect equity section.
    Memo includes: Cost method application, contra-equity presentation.

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Internal Use Software & CapEx (ASC 350-40, ASC 360)

16. Capitalized Internal Software Costs
    Why it matters: Certain costs during development must be capitalized.
    Memo includes: Phase determination, direct labor tracking.
17. Cloud Implementation Costs
    Why it matters: Cloud ERP/CRM implementation can be capitalized.
    Memo includes: Project stage, amortization method.
18. AI Model Training or Data Set Costs
    Why it matters: Companies incur large expenses to prepare datasets.
    Memo includes: Nature of cost, one-time or asset-backed, GAAP treatment.
19. Impairment of Software or CapEx
    Why it matters: Trigger events require recoverability testing.
    Memo includes: Cash flow estimates, asset grouping.

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Leases & Real Estate (ASC 842)

20. Office and Data Center Leases
    Why it matters: All leases require ROU asset and liability.
    Memo includes: Classification, term, discount rate.
21. Embedded Leases in Contracts
    Why it matters: Service agreements may contain embedded leases.
    Memo includes: Asset specification and control analysis.
22. Lease Modifications or Terminations
    Why it matters: Changes in lease terms affect accounting.
    Memo includes: Reassessment of lease classification and balances.

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M&A, Intangibles & Impairment (ASC 805, ASC 350, ASC 360)

23. Business Combinations
    Why it matters: All acquired assets and liabilities must be fair valued.
    Memo includes: Valuation methods, identifiable intangibles, goodwill calc.
24. Goodwill Impairment
    Why it matters: Triggering events require quantitative or qualitative testing.
    Memo includes: Reporting unit valuation and test method.
25. Long-Lived Asset Impairment
    Why it matters: Unused software or equipment may need write-downs.
    Memo includes: Two-step impairment test.
26. IP License Intangibles
    Why it matters: Purchased IP may need amortization or impairment.
    Memo includes: Useful life, amortization method, impairment testing.

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Consolidation & Structure (ASC 810, ASC 830)

27. Consolidation of Subsidiaries or Affiliates
    Why it matters: Certain entities must be consolidated.
    Memo includes: Voting interest vs. VIE model.
28. Variable Interest Entity Analysis
    Why it matters: Founders may control another entity in substance.
    Memo includes: Power and benefit assessment.
29. Foreign Currency Translation
    Why it matters: Required for foreign operations.
    Memo includes: Functional currency designation, CTA calculation.
30. Related-Party Transactions
    Why it matters: Required disclosures and possible consolidation.
    Memo includes: Nature of control, economic substance.

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Risk, Disclosure & Special Areas

31. Going Concern Assessment
    Why it matters: Funding uncertainty must be disclosed.
    Memo includes: Liquidity forecast and mitigation plans.
32. Income Taxes and Valuation Allowance
    Why it matters: NOLs and DTAs require realization analysis.
    Memo includes: Forecasted profits, expiration, tax strategy.
33. Uncertain Tax Positions
    Why it matters: R&D credits, nexus, transfer pricing may be uncertain.
    Memo includes: Likelihood and estimate of settlement.
34. Litigation or Contingency Reserves
    Why it matters: Probable and estimable losses must be accrued.
    Memo includes: Legal review, documentation of estimates.
35. Segment Reporting
    Why it matters: Larger startups may report by business line.
    Memo includes: Operating segments, decision-maker role, KPIs.
36. Non-GAAP Metrics Policy
    Why it matters: Common for investor presentations.
    Memo includes: Reconciliations and consistent definitions.
37. Restructuring or Severance Charges
    Why it matters: Downsizing accruals need support.
    Memo includes: Communication date, costs, and severance terms.
38. Government Grants or Loans (e.g. PPP)
    Why it matters: Grants may be income or liability.
    Memo includes: Forgiveness conditions and timing.
39. SLAs or Performance Guarantees
    Why it matters: Penalty clauses may reduce revenue.
    Memo includes: Historical performance, likelihood of breach.
40. Customer Prepayments or Nonrefundable Upfronts
    Why it matters: May involve breakage or deferred revenue.
    Memo includes: Recognition timing, refund policy analysis.

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This is not an exhaustive list. If you are facing a unique or complex accounting matter not shown here, reach out to us. Ridgeway Financial Services is happy to help. Contact us.