In May 2014, the IASB published IFRS 15, Revenue from Contracts with Customers. Simultaneously, the FASB published ASU 2014-09 (Topic 606). These two broadly identical texts represent the culmination of the Boards’ work on a major joint project that has taken many years to complete.
A recognition model in 5 steps:
Step 1 : Identify the contract(s) with a customer
Step 2 : Identify the performance obligations (POs) in the contract
Step 3 : Determine the transaction price (TP)
Step 4 : Allocate the TP to the POs in the contract
Step 5 : Recognize revenue when (or as) the entity satisfies a PO