What is 5 steps model to recognise revenue

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Accepted Answer

The 5 steps model to recognize revenue involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price, and recognizing revenue as performance obligations are satisfied.

Identify the contract: Determine the existence of a contract with a customer.
Identify performance obligations: Identify the promises to transfer goods or services to the customer.
Determine the transaction price: Determine the amount of consideration the entity expects to be entitled to in exchange for transferring goods or services.
Allocate the transaction price: Allocate the transaction price to each performance obligation in the contract.
Recognize revenue: Recognize revenue as each performance obligation is satisfied.

What is 5 steps model to recognise revenue

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