To unify and harmonize the different policies and terminology related to revenue reporting for customers with contracts, IASB and FASB introduced the 5-step model. The overarching principal was that companies must recognize revenue when goods and services are transferred to a customer, in an amount that is proportionate to what has been delivered at that point. All companies, both public and private, are required to prepare their revenue contracts in compliance with IFRS 15 and ASC 606.