Required information [The following information applies to the questions displayed below.) Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services. That core principle is implemented by (1) identifying a contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price of the contract, (4) allocating that price to the performance obligations, and (5) recognizing revenue when (or as) each performance obligation is satisfied. Core Revenue Recognition Principle Core Revenue Recognition Princi Companies recognize revenue when goods or services wer for the amount the company expect to be ontbied receivin g e to or host 9000 Five Steps Used to Apely the Principle - Identity the contract with some Step 1 lo e perlomance Step 3 -Determine the transaction price Required information Knowledge Check 01 Match each of the steps used to apply the core revenue recognition principle with its related step number Allocate the transaction price to each performance obligation Determine the transaction price Identify the contract with a customer Identify the performance obligation(s) in the contract Recognize revenue when (or as) each performance obligation is satisfied 5. Required information s related step 0:31 0:35 0:40 0:43 0:49 Transcript In step one, we identify the contract with a customer. In step two, we identify the performance obligation or obligations. In the third step, we determine the transaction price. In the fourth step, we allocate the transaction price to each performance obligation. And, finally, in step five, we recognize revenue when, or as, each performance obligation is satisfied. All revenue recognition starts with a contract between a seller and a customer. You may not have realized it, but you have been a party to several such contracts very recently, 0:52 0:59 1:04 1:06