Revenue recognition

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May 31, 2018 at 10:01 am #455049
zkaay
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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
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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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