Income: How do we meet a Performance Obligation

You're talking to the CEO of a company and the CEO says he does not understand what is meant by revenue redemption and any five steps that should be related to it.

Answer the following in approx. 100 to 400 words;

Describe what the revenue recognition principle entails and how these five steps relate to it.

Discuss how the concept of income relates to the definition of assets and liabilities. What is the concept of control and how does it relate to the concept of income? The CEO said that he had been taught for a long time that income should be redeemed or redeemable when it is registered, ie. that the company has received money or the equivalent of money or a trade receivable. Does it matter if it is possible to collect a claim against customers when revenue is recorded? Explained