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How is the revenue on this service contract recognized

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Reference no: EM132945068

Problem - Revenue Recognition In 2017, SaulGroup, Inc. signed a fixed-fee contract to provide network security services which require a premise server to Goodman LLC. for $120,000 in one year. The company has performed similar services in the past and estimated with a high degree of reliability that he project is 40% complete at the end of 2017.

a. How is the revenue on this service contract recognized in the year 2017 under (1) U.S. GAAP and (2) IFRS 15?

b. Prepare the necessary journal entries.

Reference no: EM132945068

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