In this article we will discuss about the realisation principle in revenue recognition. The realisation principle primarily determines the question of revenue recognition. Revenue recognised under the realisation principle is recorded at the amount received or expected to be received. The realisation principle requires that revenue be earned before it is recorded. This requirement usually causes no problems because the [...]
The following points highlight the seven important criterion for revenue recognition. Some of the criterion are: 1. Revenue Recognised at the Point of Sale 2. Revenue Recognition in Sale of Services 3. Revenue Recognition in Construction Work 4. Revenue Recognition in Instalment Credit Sales 5. Revenue Recognition Using Production Method and Others. Criteria # 1. Revenue Recognised at the Point [...]
In this article we will discuss about the effects of uncertainties on revenue recognition. Revenue recognition inevitably falls short of its objective because of uncertainty and its effects on business and economic activities and their depiction and measurement. Uncertainty often clouds whether a particular event has occurred or what an event's effects on assets or liabilities or both may have [...]