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Revenue recognition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Revenue recognition

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  • May 31, 2018 at 10:01 am #455049
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Can explain theses in details plz

    I know that we recognize revenue when servic/goods received

    But

    1) do we always allocate revenue equally on contract period?

    2) how to record advance payment/receipt of part of the amount agreed in the contract?

    Thanks

    June 2, 2018 at 9:15 am #455439
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    The revenue will be recognised equally unless there is a more appropriate method, so if we are constructing an asset for a third party the revenue would e better recognised on a stage of completion.

    Any money received in advance is treated as deferred income.

    Thanks

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