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I have a question regarding revenue.
I have noticed in Open tuition we apply the stage completion once the profit has been calculated for SPL. For example, if the stage of completion is 10% and the profit is £1000, then the answer would be £100.
However, in some cases we apply the stage of completion instantly to Revenue. This is done in the loss making example in OT but I have seen in my revision kits it applies straight to revenue even in profit examples.
And I have found in some cases in my revision kit the stage of completion is applied to Revenue and cost of sales.
If you need to me to state specific examples I can do so, but I just wanted to know when to apply the stage of completion. Is there a different case for different scenarios? and if so, what is the reasoning?
Any response would be appreciated, thank you!
