[Verse 1] When a company makes a sale, there's more than meets the eye Not every dollar that comes in gets counted right away There are rules we must follow, standards we obey IFRS fifteen and ASC six-oh-six show us the way [Chorus] Five steps to revenue, let's count them one by one Identify the contract when the deal has just begun Find performance obligations, what you promise to deliver Set the transaction price and allocate with care Recognize when satisfied, the revenue is there Five steps to get it right, five steps everywhere [Verse 2] Step one is the contract, an agreement we can see Between the company and customer, with rights for you and me Commercial substance matters, and payment must be probable Step two finds promises within, each one accountable [Chorus] Five steps to revenue, let's count them one by one Identify the contract when the deal has just begun Find performance obligations, what you promise to deliver Set the transaction price and allocate with care Recognize when satisfied, the revenue is there Five steps to get it right, five steps everywhere [Verse 3] Step three sets the transaction price, the amount we will collect Variable considerations and discounts we must reflect Step four takes that total price and spreads it all around To each performance obligation, proportionally sound [Bridge] Over time or point in time That's when revenue will shine Control transfers to the buyer Recognition lifts us higher [Verse 4] Step five is recognition, when control has passed along The customer now benefits, our obligation's done Whether over time it happens or at one specific date The revenue gets recorded when performance is complete [Chorus] Five steps to revenue, let's count them one by one Identify the contract when the deal has just begun Find performance obligations, what you promise to deliver Set the transaction price and allocate with care Recognize when satisfied, the revenue is there Five steps to get it right, five steps everywhere [Outro] From contract to completion, these principles are true Revenue recognition basics, now you know them too
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