Does the contract identify each party’s rights regarding the goods or services to be transferred?

Each party’s rights under a contract, whether the contract is written, oral or implied, must be identifiable. If each party’s rights under the agreement cannot be identified, then the arrangement should not be accounted for under ASC 606. This is because it is not possible to assess when control of the underlying good or service has been transferred.

ASC 606-10-25-1(b)

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