Читать книгу Revenue Recognition - Renee Rampulla - Страница 19

FASB ASC 606 provides a principle-based framework by introducing core principles that an entity should apply in order to recognize revenue. Keep in mind that these core principles have replaced all industryspecific revenue recognition guidance, unless that guidance is specifically scoped out of the new standard. This is significantly different from the way in which many entities have recognized revenue in the past, which is why FASB has stated that the new revenue recognition standard is the most significant change to accounting; only second to FASB ASC. In order to recognize revenue, an entity should apply the following five steps (core principles):

 Identify the contract(s) with a customer.

 Identify the performance obligations in the contract.

 Determine the transaction price.

 Allocate the transaction price to the performance obligations in the contract.

 Recognize revenue when (or as) the entity satisfies a performance obligation.

In addition to these five-steps for recognizing revenue, ASU No. 2014-09 also addresses the following select areas:

 Accounting for incremental costs of obtaining a contract, as well as costs incurred to fulfill a contract

 Licenses

 Warranties