Assignment 1: Revenue Recognition Cases

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Case 1: Revenue Recognition According to ASC 605-50-25, Revenue recognition - customer payments and incentives “Costs that are directly related to the acquisition of a contract and that would have not been incurred but for the acquisition of that contract (incremental direct acquisition costs) shall be deferred and charged to expense in proportion to the revenue recognized. When is revenue considered to have been earned/realized/realizable in recognition? Revenue is considered earned when a good or service is either delivered or preformed and inflow is received (cash, receivable, etc.). It is is realized when a product is exchanged for cash or claims to cash (something must change hands). There are four main conditions for revenue

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