Revenue Recognition Checklist ( FINANCE )

This checklist is designed to ensure that all revenue recognition principles are followed, ensuring compliance with accounting standards and accurate financial reporting.

• Review Sales Contracts

  Ensure all sales contracts are reviewed for terms and conditions relevant to revenue recognition.

• Identify Performance Obligations

  Determine the distinct performance obligations within each contract.

• Assess Transaction Prices

  Evaluate the transaction price and allocate it to performance obligations.

• Recognize Revenue When Performance Obligations are Satisfied

  Record revenue when control of the goods or services is transferred to the customer.

• Document Revenue Recognition Process

  Maintain thorough documentation of the revenue recognition process for audit purposes.

• Review and Approve Revenue Entries

  Have a designated person review and approve all revenue entries before finalizing.

• Monitor for Changes in Contracts

  Regularly check for any amendments or changes in contracts that may affect revenue recognition.