The CPEA revenue recognition series part V - principal vs. agent

We continue our revenue recognition series on implementation issues from FASB Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The new revenue recognition standard in ASU 2014-09 is codified in FASB Accounting Standards Codification (FASB ASC) 606, with the same title. This report addresses how an entity determines whether it is acting as a principal or an agent in a transaction when recognizing revenue. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends the new revenue recognition standard in FASB ASC 606.