CA18-1 (Five-Step Revenue Process) Revenue is recognized based on a five-step process that is applied to a companys revenue arrangements. Instructions (a) Briefly describe the five-step process. (b) Explain the importance of contracts when analyzing revenue arrangements. (c) How are fair value measurement concepts applied in implementation of the five-step process? (d) How does the five-step process reflect application of the definitions of assets and liabilities?