SAB 104,"Revenue Recognition," was not meant to change GAAP,but rather to close some loopholes and eliminate gray areas in how GAAP was being applied in practice.

Question

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SAB 104 was issued by the SEC to provide guidance on the application of GAAP for revenue recognition. It aimed to provide clarity and eliminate inconsistencies in how GAAP was being applied in practice, but did not change the underlying principles of GAAP.

SAB 104,"Revenue Recognition," Was Not Meant to Change GAAP,but Rather