For example:
A 12 month insurance policy covers Jan-Dec. The first invoice for one quarter of the policy's total cost ($12,000) is received in February, after the books are closed for January. Additional invoices are received in March, April, and May.
Which is correct?
A. Allocate 1/11 of $12,000 to Feb-Dec (even though not yet paid)
B. Allocate 1/11 of $3,000 to Feb-Dec, then 1/10 of the March invoice, 1/9 of the April, etc?
Is there a website that explains FASB rules in clear terms?