According to the joint new standard for revenue recognition,issued by FASB and IASB,which item below is NOT necessary?

Question

Quizplus · Accepted Answer

The joint new standard for revenue recognition issued by FASB and IASB requires an entity 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, recognizing expenses as the entity satisfies the performance obligations is not a necessary step in the new standard for revenue recognition.

According to the Joint New Standard for Revenue Recognition,issued by FASB