Under a joint Exposure Draft issued by the IASB and FASB in June 2010, Revenue from Contracts with Customers, which of the following is NOT one of the steps to be applied in the recognition of revenue across a wide range of transactions and industries?

Question

Quizplus · Accepted Answer

The correct steps to be applied in recognizing revenue under the joint Exposure Draft issued by the IASB and FASB include:
A) Identify the contract with a customer.
B) Identify the separate performance obligations in the contract.
C) Determine the transaction price.
D) Allocate the transaction price to the separate performance obligations.
Therefore, option B which suggests 'Do not separate the transaction price for separate performance obligations if the contract is a bundled contract where goods and services are not sold separately' is not a step to be applied.

Under a Joint Exposure Draft Issued by the IASB and FASB