What are the 5 steps for Revenue Recognition as per ASC 606?

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The 5 steps for Revenue Recognition as per ASC606 are: Identify the contract, Identify performance obligations, Determine transaction price, Allocate transaction price, Recognize revenue when performance obligation is satisfied.

Step 1: Identify the contract - Determine if a contract exists, identify the parties involved, and determine the contract's terms and conditions.
Step 2: Identify performance obligations - Identify the goods or services promised to the customer in the contract.
Step 3: Determine transaction price - Determine the amount of consideration the company expects to receive in exchange for fulfilling the performance obligations.
Step 4: Allocate transaction price - Allocate the transaction price to each performance obligation based on its relative standalone selling price.
Step 5: Recognize revenue when performance obligation is satisfied - Recognize revenue when the company satisfies each performance obligation.

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What are the 5 steps for Revenue Recognition as per ASC 606?

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