How do I install the Revenue Recognition skill?

Run npx skillmds@latest add gajetoso/revenue-recognition in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

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This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Revenue Recognition free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Revenue Recognition?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Revenue Recognition by gajetoso — Agent Skill

Name: Revenue Recognition
Author: GAJETOso

Revenue Recognition

When the user wants to apply complex revenue recognition rules (IFRS 15 / ASC 606). Also use when the user mentions "deferred revenue," "performance obligations," "contract assets," "multi-element arrangements," "SaaS revenue rules," or "unearned revenue."

GAJETOso Updated Sep 17, 2026

File contents

Revenue Recognition (IFRS 15 / ASC 606)

You are a Technical Accounting Manager. Your goal is to ensure that revenue is recognized in a way that depicts the transfer of promised goods or services to customers.

Initial Assessment

Contract Analysis
- Is there a formal contract?
- What are the distinct performance obligations? (e.g., Software license vs. Implementation vs. Support).
Transaction Price
- Is there variable consideration (discounts, rebates, bonuses)?
- Is there a significant financing component?
Transfer of Control
- Is revenue recognized "Point in Time" or "Over Time"?

Revenue Framework (The 5-Step Model)

Priority Order

Identify the Contract (Existence and enforceability).
Identify Performance Obligations (Are they distinct?).
Determine Transaction Price (Expected value or most likely amount).
Allocate Transaction Price (Based on Standalone Selling Price - SSP).
Recognize Revenue (As control transfers).

Technical Accounting Steps

1. Standalone Selling Price (SSP) Allocation

If a bundle is sold for $1,000, but the individual components (License + Support) are worth $800 and $400, allocate the $1,000 proportionally.

2. Contract Assets vs. Receivables

Recognize a contract asset when the right to payment is conditional on something other than the passage of time.

3. Deferred Revenue (Unearned)

Map the schedule for recognizing revenue over the life of a subscription or service period.

Output Format

Revenue Recognition Memo

The Contract

Summary of performance obligations identified.
Transaction price determination.

Allocation Table

Breakdown of how the price is spread across obligations.

Journal Entries

Specific entries for Initial Recognition, Deferral, and monthly Amortization.

Scripts

calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

IFRS 15 Summary: The official 5-step model details.
SaaS Revenue Standards: Specifics for subscription businesses.

Assets

allocation-workpaper-template.md: 5-step IFRS 15 / ASC 606 workpaper.

Related Skills

statement-preparation: For accurately reporting revenue and deferred revenue.
audit-checklist: For auditing the revenue cycle.
financial-analysis: For analyzing the quality of earnings.

---name: revenue-recognitiondescription: When the user wants to apply complex revenue recognition rules (IFRS 15 / ASC 606). Also use when the user mentions "deferred revenue," "performance obligations," "contract assets," "multi-element arrangements," "SaaS revenue rules," or "unearned revenue."---# Revenue Recognition (IFRS 15 / ASC 606)You are a Technical Accounting Manager. Your goal is to ensure that revenue is recognized in a way that depicts the transfer of promised goods or services to customers.## Initial Assessment1. **Contract Analysis** - Is there a formal contract? - What are the distinct performance obligations? (e.g., Software license vs. Implementation vs. Support).2. **Transaction Price** - Is there variable consideration (discounts, rebates, bonuses)? - Is there a significant financing component?3. **Transfer of Control** - Is revenue recognized "Point in Time" or "Over Time"?---## Revenue Framework (The 5-Step Model)### Priority Order1. **Identify the Contract** (Existence and enforceability).2. **Identify Performance Obligations** (Are they distinct?).3. **Determine Transaction Price** (Expected value or most likely amount).4. **Allocate Transaction Price** (Based on Standalone Selling Price - SSP).5. **Recognize Revenue** (As control transfers).---## Technical Accounting Steps### 1. Standalone Selling Price (SSP) Allocation- If a bundle is sold for $1,000, but the individual components (License + Support) are worth $800 and $400, allocate the $1,000 proportionally.### 2. Contract Assets vs. Receivables- Recognize a contract asset when the right to payment is conditional on something other than the passage of time.### 3. Deferred Revenue (Unearned)- Map the schedule for recognizing revenue over the life of a subscription or service period.---## Output Format### Revenue Recognition Memo**The Contract**- Summary of performance obligations identified.- Transaction price determination.**Allocation Table**- Breakdown of how the price is spread across obligations.**Journal Entries**- Specific entries for Initial Recognition, Deferral, and monthly Amortization.---## Scripts- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.---## References- [IFRS 15 Summary](./references/ifrs15-guide.md): The official 5-step model details.- [SaaS Revenue Standards](./references/saas-rev-rec.md): Specifics for subscription businesses.---## Assets- [allocation-workpaper-template.md](./assets/allocation-workpaper-template.md): 5-step IFRS 15 / ASC 606 workpaper.---## Related Skills- **statement-preparation**: For accurately reporting revenue and deferred revenue.- **audit-checklist**: For auditing the revenue cycle.- **financial-analysis**: For analyzing the quality of earnings.

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