Читать книгу Revenue Recognition - Renee Rampulla - Страница 27

Before delving into the application of step 1, it is important to understand the following definitions in the FASB Accounting Standards Codification^® (ASC) master glossary:

Contract: An agreement between two or more parties that creates enforceable rights and obligations.

Customer: A party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.

Revenue: Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from deriving or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operation.

A gain is defined in FASB Concept Statement No. 6, Elements of Financial Statement, as:

Gains are increases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from revenues or investments by owners.

FASB Concept Statement No. 6, further states in paragraph 84, that

Gains and losses result from entities’ peripheral or incidental transactions and from other events and circumstances stemming from the environment that may be largely beyond the control of individual entities and their managements. Thus, gains and losses are not all alike. There are several kinds, even in a single entity, and they may be described or classified in a variety of ways that are not necessarily mutually exclusive.