Posts tagged Revenue Recognition

Basically, by the rule, you should not recognize revenue until it has been earned. So, when is, exactly, a revenue considered as earned? You may …

IAS recognizes the percentage-of-completion method as the only valid method of accounting for construction contracts. Under an earlier version of IAS 11, both the percentage-of-completion …

The general principles followed by company management in recognizing revenue should be stated in a disclosure [footnote]. An entity should disclose: (1) The accounting policies …

Following on my previous post “Premature or Fictitious Revenue Recognition [A Closer Look”, this post provide a checklist of items to consider in detecting premature …

Premature revenue recognition and fictitious revenue recognition differ in the degree to which aggressive accounting actions are taken. In the case of premature revenue, revenue …

Most revenue transactions—those initiated and completed almost at the same  time—pose few problems for revenue recognition. However, not all transactions are that simple. For example, …

Services represent over half of the transactions completed in the U.S. economy, but there are no official pronouncements that provide specific accounting standards for them. …

Franchising has become a popular growth industry, with many businesses seeking to sell franchises as their primary income source and individuals seeking to buy franchises …

In a broad sense, the term revenue refers to sources of income for a business enterprise. Most forms of business activity generate revenues from a …

Back on the Christmas eve 2008, I received an interesting e-mail from Janet [a junior accountant in Canada]. She concerns about “revenue recognition of software …

In some industries it is common practice for customers to have the right to return a product to the seller for a credit or refund. …

This post covers a complete revenue recognition policies and procedures that you can actually apply into a business, a real business. This policies and procedures …

Examples presented on the previous post [Applying Installment Method] ignored interest, a major component of most installment sales contracts. It is customary for the seller …

In this post, I am going to reveal “how to apply revenue recognition under Installment method” in step-by step. As the title says, it is …

Following on my previous post (Evolving Problems In Revenue Recognition), the following controls can be used to spot transactional errors or attempts to alter the …

Certain problems currently found in the application of the general principles of revenue recognition, which can sometimes lead to fraudulent reporting, are discussed in this …

In the construction industry, two accounting approaches have developed over the years regarding the recognition of revenue. The first approach—the completed-contract method—does not recognize any …

Company’s periodic income statement consists essentially of two components: revenue and expense. Revenue for the period is generally determined by applying the revenue recognition principle. …