Principles of revenue recognition

According to the ASC 606 as defined by the FASB, revenue can be recognized from a payment if:

  1. Risks and rewards have been transferred from the seller to the buyer
  2. The seller has no control over the goods sold
  3. Collection of payment is reasonably assured
  4. The amount of revenue can be reasonably measured
  5. Costs of earning the revenue can be reasonably measured

ChartMogul helps with the first principle as revenue can be recognized under the assumption that services will be rendered over time once a payment has been made. However, limitations apply if no continuous service is provided.