Which of the following is not a step pertaining to the revenue recognition principle beginning in year 2018,for more complex customer contracts,according to both U.S.GAAP and to International Financial Reporting Standards (IFRS)?
A)Determine the transaction price.
B)Identify the performance obligations.
C)Identify the contract between the company and its supplier of goods
D)Allocate the transaction price to the performance obligations.

Question

Quizplus · Accepted Answer

Identifying the contract between the company and its supplier of goods is not a step pertaining to the revenue recognition principle beginning in year 2018, for more complex customer contracts, according to both U.S. GAAP and IFRS. The other three steps, determining the transaction price, identifying the performance obligations, and allocating the transaction price to the performance obligations, are all key steps in recognizing revenue under the new revenue recognition standards.

Which of the Following Is Not a Step Pertaining to the Revenue