Revenue Recognition Explained

When should a company record revenue on the income statement? In this video, I explain the five-step process firms use to decide when and how much revenue to recognize. Using examples from companies such as Chipotle, Asana, Expedia, Amazon, United Airlines, Microsoft, and Zynga, I show why revenue recognition can be straightforward in some settings and much more complicated in others. Along the way, I explain contracts with customers, separate performance obligations, variable transaction prices, and bundled sales.

Видео Revenue Recognition Explained канала Accounting with Alina