Question:
What are the five key steps to recognizing revenue?
Answer:
The five key steps in recognizing revenue under the new standard are:
1. Identify a contract(s) with a customer.
2. Identify the separate performance obligation(s) in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to the separate performance obligations.
5. Recognize revenue when (or as) the entity satisfies each performance obligation.
What are the five key steps to recognizing revenue?
Answer:
The five key steps in recognizing revenue under the new standard are:
1. Identify a contract(s) with a customer.
2. Identify the separate performance obligation(s) in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to the separate performance obligations.
5. Recognize revenue when (or as) the entity satisfies each performance obligation.
