Revenue Arrangements

Revenue is recognized based on a five-step process that is applied to a companys revenue arrangements.

Answer the following questions in the Discussion Board:

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?