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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 ask....
IAS 1 states that, at the minimum, the income statement must include line items that present the following items: revenue, finance costs, share of profits and...
Whether to completing a business plan (for investors’ review) or just doing a rough feasibility of a small business model, calculating and analyzing break-even point is...
The objective of financial statements is to provide information for economic decisions. A complete set of financial statements comprises a balance sheet, income statement, statement of...
If you are a bookkeeper, you serve as the eyes and ears of the accountant. Therefore you want to understand, at least, the basics of accounting....
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. However,...
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 is...
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 typically...
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 reported...
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 post....
In a financial report, the income statement may seem like a tub standing on its own feet, disconnected from the balance sheet and the statement of...
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 profit...
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. According...