Revenues, net

Adoption of ASU No. 2014-09 Topic 606, “Revenue from Contracts with Customers”

On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method and applied its guidance to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. The Company recorded a net addition to opening retained earnings of $454 as of January 1, 2018 due to the cumulative impact of adopting Topic 606, primarily due to contract acquisition costs.

The adoption of Topic 606 did not have a significant impact on the measurement or recognition of revenues during year ended December 31, 2018.

Refer to Note 3 to the consolidated financial statements for revenues disaggregated by reportable segments and geography.

Contract balances

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:



	As of
	December 31, 2018		December 31, 2017
Accounts receivable, net	$	164,752	$	135,705
Contract assets	$	5,445	$	2,643
Contract liabilities
Deferred revenue (advance payments portion)	$	6,345	$	9,311
Consideration received from customer for transitions activities	$	1,669	$	1,601

Accounts receivable includes $63,952 and $49,125 as of December 31, 2018 and December 31, 2017, respectively, representing amounts not billed to customers. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables.

Contract assets represents upfront payments made to customers.

Contract liabilities represents that portion of deferred revenue for which payments have been received in advance from customers including revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. The contract liabilities are included within deferred revenues in the consolidated balance sheet and are recognized as revenue as (or when) the performance obligation is fulfilled under the contract.

Revenue recognized from the carrying value of contract liabilities as of December 31, 2017 during the year ended December 31, 2018 was $9,147.

Contract acquisition costs

The Company had contract acquisition costs of $713 as of December 31, 2018. As of January 1, 2018, the Company capitalized $454 as contract acquisition costs related to contracts that were not completed. Further, the Company capitalized an additional $567 during the year ended December 31, 2018, and amortized $308 during the year ended December 31, 2018. There was no impairment loss in relation to costs capitalized. The capitalized costs are being amortized on a straight-line basis over the life of contract.

Contract fulfillment costs

The Company had deferred contract fulfillment costs relating to transition activities of $4,051 and $2,769 as of December 31, 2018 and December 31, 2017, respectively. The Company capitalized an additional $2,216 during the year ended December 31, 2018, and amortized $934 during the year ended December 31, 2018. There was no impairment loss in relation to costs capitalized. The capitalized costs are being amortized on a straight line basis over the life of contract.

Consideration received from customers, if any, relating to such transition activities are classified under Contract Liabilities and are recognized ratably over the period in which the related performance obligations are fulfilled.