Key aspects of the converged accounting standards
New standard takes principle-based approach to revenue recognition issue A firm should recognize revenue when it has transferred a good or service to a customer …
FS
Specific revenue recognition applications
Revenue is usually recognized at delivery, but sometime before the delivery or after delivery Long-term contracts (15) Percentage-of-completion method (16) when outcome of contract can …
Principles of revenue recognition and accrual accounting
Revenue is recognized When warned and expenses are recognized Not coincide with receipt or payment of cash According to IASB, revenue is recognized from sales …
Presentation formats
Single-step statement (10): all revenues are grouped together, all expenses are grouped together Multi -step statement (11) Include gross profit Multi-step income statement Gross profit …
Component of income statement
Revenues (1): amounts reported from sales of goods and services in the normal course of business Net revenue (2): Revenue less adjustment for returns and …