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DECEMBER 2017 www.bdo.comBDO KNOWS:REVENUE RECOGNITION TOPIC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS TAX IMPLEMENTATION ROADMAPCONTACTS U.S. GAAP YOSEF BAR BUT National Accounting Partner 2128858292
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How to fill out revenue recognition - bdo
How to fill out revenue recognition - bdo
01
To fill out revenue recognition according to BDO guidelines, follow these steps:
02
Determine the applicable revenue recognition framework or standard that is relevant to your business, such as ASC 606 or IFRS 15.
03
Identify the performance obligations in the contract with the customer.
04
Allocate the transaction price to each of the performance obligations based on their standalone selling prices.
05
Recognize revenue when the performance obligations are satisfied, either over time or at a point in time.
06
Determine whether any practical expedients or significant financing components need to be considered in the revenue recognition process.
07
Disclose the relevant revenue recognition policies and significant judgments made in applying those policies in your financial statements.
Who needs revenue recognition - bdo?
01
Revenue recognition is crucial for various entities and individuals, including:
02
- Publicly traded companies that need to comply with financial reporting regulations, such as the Securities and Exchange Commission (SEC) in the United States.
03
- Private companies that want to improve their financial reporting practices and provide transparent information to stakeholders.
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- Auditors and accounting professionals who need to evaluate and ensure the accuracy of an entity's revenue recognition practices.
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- Investors and creditors who rely on financial statements to make informed decisions about investing or lending to a company.
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- Regulatory bodies and government agencies that require accurate and reliable financial information to enforce regulations and assess compliance.
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What is revenue recognition - bdo?
Revenue recognition refers to the accounting principle that determines when revenue is recognized as earned, which is crucial for financial reporting purposes.
Who is required to file revenue recognition - bdo?
Companies and organizations that follow Generally Accepted Accounting Principles (GAAP) are required to file revenue recognition.
How to fill out revenue recognition - bdo?
To fill out revenue recognition, companies need to follow the specific guidelines and criteria outlined in GAAP and accurately report their revenue earned.
What is the purpose of revenue recognition - bdo?
The purpose of revenue recognition is to ensure that revenue is recorded in the correct period and matches the associated costs to provide an accurate representation of a company's financial performance.
What information must be reported on revenue recognition - bdo?
Companies must report information such as the amount of revenue earned, the timing of revenue recognition, any associated costs, and any potential risks or uncertainties.
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