When can revenue be recognized under ASC 606 / IFRS 15?

Answer

Under ASC 606 (US GAAP) and IFRS 15, revenue is recognized when the company satisfies a performance obligation by transferring control of a good or service to a customer. The framework is a five-step process: (1) identify the contract with the customer, (2) identify the distinct performance obligations in the contract, (3) determine the transaction price, (4) allocate that price across the performance obligations, and (5) recognize revenue as each performance obligation is satisfied.