Description
Analyze the case below (attachment) This case study should be written as a memo. (The solution should be in a written form). Please be clear and concise in your response.
)1 List the Area and Topic number from the Codification that you will be researching to resolve your clients’ questions. )2 Cite the proper ASC (XX)-(YY)-(ZZ)-(PP) that lists the five-step revenue recognition process as set forth in the Codification. )3 For each of the five steps in the process, analyze in detail and support your conclusion for your client’s situation by citing the proper Codification reference as follows ASC (XX)-(YY)-(ZZ)-(PP). Specifically, include a. Step One – Is there a contract? b. Step Two- Identify performance obligations. c. Step Three-Determine the transaction price. d. Step Four-Allocate the transaction price to the performance obligations. e. Step Five-Recognize revenue when (or as) the entity satisfies a performance obligation. Please just define the decision-making process used to determine if revenue should be recognized over time or at a point in time and cite the proper Codification reference. The case above does not give you enough specifics to determine a specific course of action. However, it is your responsibility to give your client all the detail to draw their own conclusion.
Sample Solution