Question

The previous requirement for revenue recognition, which dictated that the earnings process must be virtually complete and the collectiblity of the related assets reasonably assured was referred to as the

Answer 1

The previous requirement for revenue recognition under GAAP was referred to as the realizable and earned criteria, but it has been superseded by the five-step model introduced by FASB's ASU 2014-09.

Step-by-step explanation:

The previous requirement for revenue recognition, which stated that the earnings process must be virtually complete and the collectibility of the related assets reasonably assured, was referred to as the realizable and earned criteria. This principle was a part of Generally Accepted Accounting Principles (GAAP) that governed how and when revenue could be recognized on the financial statements of companies. It has since been updated and replaced by the Accounting Standards Update (ASU) 2014-09 from the Financial Accounting Standards Board (FASB), often referred to as Topic 606, which provides updated guidance on revenue recognition known as the five-step model.