Revenue recognition criteria

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Reference no: EM133067831

Recommendation: As per Revenue Recognition criteria, revenue should be recognized only when the service has been delivered. In this case recording bonus of $75000 as revenue is incorrect which means criteria is not met because delivery is not until March 1 of the following year. As the delivery is on monthly basis for the next 3 years which is 36 months, so the revenue should be differed and amortized for the next 36 months.

Reference no: EM133067831

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