Revenue Flashcards
For each performance obligation satisfied over time, appropriate methods of measuring progress include the:
Output and input methods
For each performance obligation satisfied over time, an entity should consistently apply a single method of measuring progress similar to performance obligations and in similar circumstances. This includes out and input methods.
Output recognizes revenue basis of direct measurements to the value to the customer of the goods or services transferred to date relative to the remaining foods or services promised under the contact, and include methods such as surveys of
Performance completed to date, milestones, time elapsed, and units produced or delivered.
Input methods recognize revenue on the basis of the entity’s efforts or inputs in satisfying a P.O. For example, costs incurred relative to the total expected inputs to satisfy that performance obligation
