Revenue RecognitionKnowledge Center |
11 items • 21.134 visits
Sign up for free
Welcome to the Revenue Recognition center of 12manage.
Here we exchange knowledge and experiences in the field of Revenue Recognition.
❗Sign up now to gain access to 12manage. It's completely free.
What is Revenue Recognition?The Revenue Recognition principle is a cornerstone of Accrual Accounting, as it determines the specific conditions under which income can be recognized as revenue in the income statement. Revenue Recognition Criteria under IFRSUnder IAS/IFRS (IAS 18), revenue should be recognized when:
For the rendering of services and long-term construction projects, revenue should be recognized by reference to the stage of completion of the transaction at the balance sheet date (cf. Percentage-of-Completion Method). Revenue Recognition Criteria under US GAAPAccording to U.S. GAAP (mainly covered under ASC 605), revenue should be recognized when:
In case that the collection is not reasonably assured, the recognition of revenue should be deferred (cf. Installment Sales Method, Cost Recovery Method). For long-term construction projects, the Percentage-of-Completion Method or the Completed-Contract Method should be applied.
|
|
Return to Management Hub: Finance & Investing More on Management | Return to Management Dictionary |
This ends our Revenue Recognition summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2024 12manage - The Executive Fast Track. V17.2 - Last updated: 20-5-2024. All names ™ of their owners.