[Verse 1] When you sell a service or a good today There's a standard way to show the pay IFRS fifteen and ASC six oh six Both use the same accounting tricks A customer contract starts the game Performance obligations we must name Transaction price we need to know Five simple steps and off we go [Chorus] Five steps to revenue recognition Contract, performance, price, allocation, satisfaction Identify, determine, allocate Then recognize when obligations you complete Five steps to revenue recognition Making sure your numbers show the true position [Verse 2] Step one find the contract with your client Written terms that both sides can't deny it Step two list what you promised to deliver Each distinct good or service makes you shiver Step three calculate transaction price Variable payments need thinking twice Step four spread that price across each part Based on standalone selling price from start [Chorus] Five steps to revenue recognition Contract, performance, price, allocation, satisfaction Identify, determine, allocate Then recognize when obligations you complete Five steps to revenue recognition Making sure your numbers show the true position [Bridge] Step five is when the magic happens now Control transfers and you take your bow Over time or at a point in time That's when revenue becomes your shine US GAAP and IFRS mostly align But implementation details can cross the line Disclosure rules may differ here and there But the five-step model shows they care [Verse 3] Performance satisfied means control passed Customer benefits from what you've massed Consumption, payment, legal title too Physical possession and right to use Revenue recognition used to vary wide Now these standards keep us side by side Financial statements show a clearer view When the five-step model guides you through [Chorus] Five steps to revenue recognition Contract, performance, price, allocation, satisfaction Identify, determine, allocate Then recognize when obligations you complete Five steps to revenue recognition Making sure your numbers show the true position [Outro] From contracts to the final recognition Follow steps with careful precision Revenue standards keep us all in line Five steps make your financial statements shine
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