Episode 40 - The "Revenue Recognition Principle"

the revenue recognition principle leeyo podcast episode 40Matt and Jim welcome back friend of the podcast Diana Gilbert, a senior consultant who leads the technical accounting practice for the accounting firm of RoseRyan, to answer the fundamental question, “What is the Revenue Recognition Principle?”

More specifically, the discussed principle(s) include the following for revenue to be recognizable:

(a) having a clear agreement between parties, or contract

(b) an ability to collect the price from the customer

(c) knowing what the customer will pay, via fixed and determinable price

and the ability to deliver what the customer is purchasing for revenue to be earned.

In a handy deeper dive on some aspects surrounding the ‘Revenue Recognition Principle,’ the trio review the various types of contracts, how a price might not be ‘fixed and determinable,’ the obvious and not-so-obvious considerations when it comes to collectability and what delivery of goods or services really means.

There’s a lot to the Revenue Recognition Principle.

Listen to Gilbert’s previous podcast guest stint or contact her directly at dgilbert@roseryan.com.

The “Ask the RevRec Experts” podcast presented by Leeyo Software reviews questions asked through the website, email, out in the field, webinars or at industry events to find answers for each, often directly from our guest experts.

Please submit questions and feedback to podcast@leeyo.com or via the “Ask the Experts” box in the right-hand sidebar.

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