According to FASB ASC 606, which of the following is not part of the five-step approach for revenue recognition?
A)Identify the contract(s)with a customer.
B)Determine the transaction price.
C)Determine whether the buyer will take a discount.
D)Identify the performance obligations in the contract.

Question

Quizplus · Accepted Answer

Determining whether the buyer will take a discount is not part of the five-step approach for revenue recognition under FASB ASC 606. The five steps are: 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, and recognize revenue when (or as) the entity satisfies a performance obligation.

According to FASB ASC 606, Which of the Following Is