ASU 2014-09 (Revenue from Contracts with Customers)

ASU 2014-09 is a financial accounting standard that provides guidelines on how companies should recognize revenue from their contracts with customers. It ensures revenue is reported consistently and transparently by emphasizing the transfer of control of goods or services to the customer, rather than simply counting sales when they occur. The standard outlines a five-step process to identify, measure, and recognize revenue, promoting comparability across industries. Overall, it helps stakeholders better understand a company's financial performance by aligning revenue recognition with the timing and nature of the underlying transactions.