a 12-15 page report containing their analyses if the following aspects of Revenue Recognition as

reflected in Generally Accepted Accounting Principles:

1. Please briefly summarize the Revenue Recognition Principle as reflected in presently effective

Generally Accepted Accounting Principles. Be sure to address extant guidelines addressing

Multiple Element Sales Contracts and Multi-Period Revenue Recognition.

2. Please briefly summarize the core principles of the new issued guidelines which reporting

entities ought to follow focusing upon the key notion that revenue should be recognized in a

manner which reflects the transfer of promised goods or services to customers in relation to the

consideration to which the entity expects to be entitled in exchange for those goods or services.

More specifically, discuss the following steps identified in the new guidelines:

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

3. Please compare and contrast the presently effective revenue recognition principle guidelines

with the guidelines outlines in ASU 2014-09 Revenue from Contracts with Customers Topic 606.

Be sure to address in your answer the probable impact of the Multiple Performance Obligation

Analysis upon revenue reported by entities. Mention specifically how the new guidelines may or

may not incorporate relative fair value allocation and percentage completion methodologies

traditionally employed in GAAP.

4. Take A Position And Defend It: Take a position relative the improvements in financial

reporting by reporting entities vis--vis the extant revenue recognition guidelines. Be sure to

address issues such as accomplishing convergence with IFRS as well as improved comparability

among companies, both U.S. as well and internationally.