what is needed to satisfy the revenue recognition principle 
the five steps needed to satisfy the updated revenue recognition principle are 1 identify the contract with the customer 2 identify contractual performance obligations 3 determine the amount of consideration price for the transaction 4 allocate the determined amount of consideration price to the contractual obligations and 5 recognize revenue when the performing party satisfies the performance obligation 3the bottom linerevenue is a key metric for any business certain businesses must abide by regulations when it comes to the way they account for and report their revenue streams public companies in the u s must abide by generally accepted accounting principles which sets out principles for revenue recognition this prevents anyone from falsifying records and paints a more accurate portrait of a company s financial situation 