Five Step Criteria for Revenue Recognition

International Financial Reporting Standards (IFRS) prescribe Five revenue recognition criteria by Issuing IFRS 15 as follows:

1. Identify the contract with a customer.
2. Identify the separate performance obligation (PO) in the contract.
3. Determine the transaction Price
4. Allocate the transaction price to the separate performance obligation.
5. Recognition revenue when the entity satisfy a performance obligation.