The new revenue recognition standard outlines five steps for proper compliance. On the surface, these steps seem simplistic. However, there are many considerations that should be considered within each step based on your process and industry. Previous courses in this series have covered the standard at a high level and evaluated steps one and two of the standard. They are: • Understanding the Revenue Recognition Standard • Revenue Recognition: Considerations for Identify the Contract - Part One • Revenue Recognition: Considerations for Identify the Contract - Part Two • Revenue Recognition: Considerations for Performance Obligations – Part One • Revenue Recognition: Considerations for Performance Obligations – Part Two • Revenue Recognition: Considerations for Transaction Price – Part One This segment is designed to further evaluate Step Three of the new model dealing with Determining the Transaction Price. The transaction price is the basis for measuring revenue. It is the amount of consideration the entity expects to be entitled to in exchange for transferring promised goods or services. Determining transaction price requires the election of policies and significant use of judgment. The new standard provides guidance on specific types of consideration. This is the second part in a two-part segment that will evaluate the various concepts involved in determining the contract price. Field of Study: Accounting