Uniqus

We are pleased to introduce By Design, a new series exploring the accounting decisions companies make before they realize they are making them.

In Issue 01, “Follow the Contracts,” Geoffrey Allen, Partner, Accounting & Reporting Consulting, examines gross versus net revenue recognition when AI models are sold through cloud partners.

Key takeaways:
- The contract matters: Revenue presentation depends on who the customer is and what the contract promises.
- Principal vs. agent: Control over the service, pricing, and risk helps determine whether revenue is reported gross or net.
- Design for the right outcome: Accounting considerations should be built into contract design and commercial negotiations, not addressed only at the reporting stage.

How early does your organization consider revenue recognition implications when structuring commercial agreements?

Read our latest Insights publication: www.uniqus.com/follow-the-contracts/

#ByDesign #RevenueRecognition #AI #Accounting #USGAAP