Revenue from contracts with customers

Revenue from contracts with customers refers to the income a business earns from agreements where it delivers goods or services to customers in exchange for payment. It recognizes the value of what the company has provided once the customer obtains control of the goods or services, ensuring that revenue is recorded in the period when the performance occurs. This approach helps businesses accurately reflect their financial performance by matching revenue to the delivery of promised products or services, regardless of when the payment is received, providing a clear picture of operational results.