Record revenue as a separate line item.
Bad debt expense has to also be included either in the income statement or in a disclosure note.
Interest revenue and expense - for significant financing components of long-term contracts - must also be included.
Sellers recognize contract liabilities, contract assets, and accounts receivable on separate lines of its balance sheet.
Contract liability: customer pays in advance. Label given to deferred revenue.
Account receivable: seller satisfies performance obligation before customer pays.
Contract asset: performance obligation satisfied, but payment depends on something other than passage of time. Example: construction company completes house, but cannot yet bill the buyer for the house.
Company has to break down revenue into finer detail in disclosure notes.