the price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. what does contingency mean here?
contingency – some untoward occurrence which would not allow the company to recognize the revenue completely.
simple example of contingency - someone purchases a product at a store (milk or ice-cream). The store can’t recognize revenue until the sale even though the price is known.
For example, if you sold umberellas to a company, the price is determined as following: The price is $5 if the total amount of rain in next month is over 500mm. The price is $3 if the total amount of rain in next month is below 500mm. In this case, the price cannot be determined before the acutall rain fall (contigency) happens.
i like your explaination