Hey, I have a hard time understanding this, what does it mean? Would you be able to explain the following below please? thanks

5-Step Framework for Revenue Recognition - Identify and Name the 5 steps

I.Identify the contract with thecustomer

Criteria for identifying the customer:

All parties have approved the legally enforceable contract - written, verbal

Each parties' rights can be identified

Payment terms, including variable consideration, can be identified

The contract has commercial substance, ie. future cash flows will change.

Collection is probable