Your question is Revenue Recognition under ASC 606 for Hospitality. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
How do you handle revenue recognition under ASC 606 for complex hospitality bookings?
Explain how you would apply the ASC 606 five-step model to a Hilton booking involving room nights, resort fees, food and beverage, cancellation provisions, loyalty points, and third-party booking channels. Address the identification of performance obligations, allocation of consideration using stand-alone selling prices, timing of recognition, contract liabilities, breakage, refunds, and principal-versus-agent presentation.
Show the journal entries you would consider and explain the controls and evidence you would use during month-end close. No contract-specific facts or dollar amounts are provided, so state what additional information is required before recording a final revenue amount.
