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Revenues from Contracts with Customers | 3 Months Ended
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Mar. 31, 2024
Revenue from Contract with Customer [Abstract] |
Revenues from Contracts with Customers | 13) Revenues from Contracts with Customers The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers. Information about Performance Obligations and Contract Balances The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The Company’s three types of future obligations are as follows: Pre-need Merchandise and Service Revenue: All pre-need merchandise and service revenue is deferred, and the funds are placed in trust until the need arises, the merchandise is received, or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. At-need Specialty Merchandise Revenue: At-need specialty merchandise revenue consists of customizable merchandise ordered from a manufacturer such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received. Deferred Pre-need Land Revenue: Deferred pre-need revenue and corresponding commissions are deferred until 10% of the funds are received from the customer through regular monthly payments. Deferred pre-need land revenue is not placed in trust. Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such a time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. The transfer of goods and services does not fulfill an obligation and revenue remains deferred. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements March 31, 2024 (Unaudited)
13) | Revenues from Contracts with Customers (Continued)
The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities
|  | Contract Balances |
|  | Receivables (1) |  |  | Contract Asset |  |  | Contract Liability |
Opening (January 1, 2024) |  | $ | 6,321,573 |  |  | $ | - |  |  | $ | 18,237,246 |
Closing (March 31, 2024) |  |  | 5,896,842 |  |  |  | - |  |  |  | 18,501,474 |
Increase/(decrease) |  |  | (424,731 | ) |  |  | - |  |  |  | 264,228 |
|  | Contract Balances |
|  | Receivables (1) |  |  | Contract Asset |  |  | Contract Liability |
Opening (January 1, 2023) |  | $ | 5,392,779 |  |  | $ | - |  |  | $ | 16,226,836 |
Closing (December 31, 2023) |  |  | 6,321,573 |  |  |  | - |  |  |  | 18,237,246 |
Increase/(decrease) |  |  | 928,794 |  |  |  | - |  |  |  | 2,010,410 |
(1) |  | Included in Receivables, net on the condensed consolidated balance sheets
The amount of revenue recognized and included in the opening contract liability balance for the three month periods ended March 31, 2024 and 2023 was $1,506,114 and $1,119,898, respectively. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Disaggregation of Revenue The following table disaggregates revenue for the Company’s cemetery and mortuary contracts: Schedule of Revenues of the Cemetery and Mortuary Contracts
|  | 2024 |  |  | 2023 |
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Major goods/service lines |  |  |  |  |  |  |  |
At-need |  | $ | 5,410,300 |  |  | $ | 5,154,036 |
Pre-need |  |  | 1,538,191 |  |  |  | 1,317,393 |
Net mortuary and cemetery sales |  | $ | 6,948,491 |  |  | $ | 6,471,429 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ | 4,190,222 |  |  | $ | 4,029,666 |
Services transferred at a point in time |  |  | 2,758,269 |  |  |  | 2,441,763 |
Net mortuary and cemetery sales |  | $ | 6,948,491 |  |  | $ | 6,471,429 |
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements March 31, 2024 (Unaudited)
13) | Revenues from Contracts with Customers (Continued)
The following table reconciles revenues from cemetery and mortuary contracts to Note 7 – Business Segment Information for the Cemetery/Mortuary Segment for the periods presented: Schedule of Reconciliation of Revenues from Cemetery and Mortuary Contracts to Business Segment Information
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Net mortuary and cemetery sales |  | $ | 6,948,491 |  |  | $ | 6,471,429 |
Gains on investments and other assets |  |  | 582,162 |  |  |  | 53,931 |
Net investment income |  |  | 1,084,192 |  |  |  | 601,491 |
Other revenues |  |  | 172,733 |  |  |  | 71,545 |
Revenues from external customers |  |  | 8,787,578 |  |  |  | 7,198,396 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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