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Recognize revenue when (or as) entity satisfies a performance obligation by transferring goods/services.

Transfer occurs when (or as) customer obtains control of goods/services, either at a point in time or over time.

Some aspects of control include:

  • ability to direct use of and obtain substantially all remaining benefits from an asset,
  • ability to restrict others’ entities to the benefits,
  • present right to payment, and
  • more.