(Answered) Assignmentapplication of the new standard requires

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Application of the new standard requires companies to apply a single revenue recognition model to all contracts with customers, using the ve-steps illustrated. The principles-based standard involves more judgments and estimates to better re ect the economics of the arrangement, prompting some companies to re-evaluate their current business models. Ultimately, new estimates and increased judgments made by management, along with new disclosures, will call for new processes, policies and controls.

A five-step model for revenue recognition

1. Identify the contract with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to separate performance obligations
5. Recognize revenue as each performanceobligation is satisfied

Do you believe this new rule will impact all industries equally?

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