Read the contents and the examples about the following topics: (1) Nonrefundable upfront fees, (2) Significant financing component in the contract, (3) Costs that give rise to an asset and (4) Bill-and-hold-arrangements. Explain the accounting for each of the topics. If appropriate, include in your explanation how are the five steps to revenue recognition applied.

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1 Nonrefundable upfront fees it is recognized as not a separate performance obligation and will be r... View the full answer