Under ASC Topic 606, which of the following statements is not true regarding the use of practical expedients in applying the revenue recognition model?
A. A firm can file an application to use a practical expedient on a large contract if it is under severe time pressure.
B. Determining the use of an expedient is dependent on whether there would not be a material difference in the financial statements from a more vigorous application of the standard.
C. One expedient is to use a portfolio approach to numerous contracts with similar characteristics.
D. A firm is not required to adjust the transaction price for a significant financing component if at the contract inception, the period between the payment and the transfer of goods or services is expected to be a year or less.
Answer: A
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