Before ASU $2014-09$ altered the foundational principles of revenue recognition, companies acknowledged revenue upon its earning and realization. These principles were substituted by a central tenet which asserts that companies should recognize revenue in a manner that portrays the conveyance of pledged goods or services to customers, while reflecting the anticipated consideration the entity is entitled to receive in exchange for those offerings. To achieve this fundamental principle, both the FASB and the IASB stipulated that companies should adhere to a $5-$step procedure.

Required:

Examine the $5-$step procedure that companies are required to follow in order to fulfill the fundamental objective of revenue recognition.