Revenue Recognition Accounting (ASC 606 / IFRS 15) Overview Revenue recognition determines when you can record revenue in your financial statements. Under ASC 606 (US GAAP) and IFRS 15, revenue is recognized when — or as — performance obligations are satisfied, not simply when cash is received. This matters enormously for subscriptions (revenue earned monthly even if billed annually), gift cards (revenue earned only on redemption), and bundled products (where a warranty component must be deferred). Getting revenue recognition right protects you from audit findings, builds investor trust, and…