Revenue
Revenue is income arising in the course of an entity's ordinary activities, such as sales to customers. Under the revenue model, identify the contract and performance obligations, determine and allocate the transaction price, then recognise revenue when or as obligations are satisfied. The transfer of control, rather than invoice or cash timing alone, drives recognition. Revenue can be recognised over time or at a point in time, depending on the obligation.
Worked example
A retailer recognises revenue as it satisfies the obligation to transfer goods.
Common mistake
Revenue excludes amounts collected for third parties such as sales tax; a disposal gain is not automatically revenue.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Direct | July 2027–August 2028 |
| ACCA | F3 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |