understanding revenue recognition main 3 phases: before, same-time, and after (FAST) revenue recognition determines when a sale should be recorded: this month or next month? this year or next year? this seems like an easy question until you consider situations in which a company sells a package of goods and services for one joint price, aka multi-element transactions. but without recognizing revenue, a company can’t hope to report any profit. accordingly, company management is typically under great pressure to recognize revenue as soon as possible. want to understand these concepts better?