- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › IAS 18
sir, at what point exatly is revenue recognised.
Vostok sells computer games and is the sole distributor of a new game. Customer demand for the new games has resulted in a lot of advance orders pending relase. As at 30 July 2002, Cistik has received deposits 500000 and anticipates he will despatch it customers by 1 december.
What sales revenue can he recginse for the year ended 31st July??
I am confused whether what sales will be recognised out of the 500000 for july?
When sales revenue is recognised is explained on page 86 of our free lecture notes!
Receiving a deposit does not mean a sale has been made. If we do not supply the goods for any reason then the deposit would have to be repaid.