Can someone help on below:
Part (b) of this question,
1) what is straight-line basis for revenue recognition?
2) how to deal with current year's profit reduction of $6m?
ACCA Forums
SBRBPP revision-51 Alexandra
Hi QIN
I dont have that text with me, but straight line revenue recognition is usually used in a service based example and (to me) means simply recognising the revenue evenly over the period of the contract.
Of course, if you have milestones in the contract and can reliably measure your achievement of these, you could recognise revenue according to these stages of completion.
Sorry, cant help with the profit part of your Q as i dont have the example to read.
Thanks, Dean.
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