According to the converged standard for revenue recognition developed by FASB and IASB,which item below is NOT necessary?

Question

Quizplus · Accepted Answer

The converged standard for revenue recognition developed by FASB and IASB requires entities to identify the contract with the customer, identify the separate performance obligations in the contract, and allocate the transaction price to the separate performance obligations in the contract. However, it does not require the recognition of expenses as the entity satisfies the performance obligations. This is because the standard only covers revenue recognition, and does not address expense recognition.

According to the Converged Standard for Revenue Recognition Developed by FASB