Principal vs. Agent in Revenue Recognition: ASC 606 Case Study

This lecture provides an in-depth examination of Grocery Inc.'s operational model and revenue recognition practices under ASC 606. Topics covered include the Principal vs. Agent classification, gross vs. net revenue distinctions, and the implications of inventory control and service integration. The session uses a detailed case study approach to assess performance obligations, product control transfer, and compliance. It concludes with a clear classification of Grocery as a principal,...