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hello and welcome to the session in which we would look at consignment arrangement as part of the revenue recognition process in a consignment arrangement we have two parties we have a consignor and a consignee for the purpose of this illustration were going to assume that pepsico is the consignor and walmart is the consignee who is the consignor its the party that transfer the goods not the title to the consigning simply put pepsico will transfer physically transfer their product and replace their product in walmart store for resale although they place their product in walmart store where walmart has physical procession the titles never did not change pepsico still have the title for its own product so the consignor pepsico will retain its title pepsico places the goods for resale simply put all whats happening here you can look at it as an arrangement to rent the shelf so all what walmart providing is the space giving pepsico the space shelves to place their product once goods are