• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Revenue recognition

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

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by Kim Smith.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 11, 2019 at 2:43 pm #504764
    alikhakar
    Member
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    For audit procedures for revenue, there is a pint “inspect credit notes issued after the year end, trace to GDN and sales invoice and make sure that sale has been reversed:occurence”. In this point..is it so that the sales returns which took place after the year end ..which were included in revenue in FS for the year end..will be removed from revenue?

    February 11, 2019 at 5:09 pm #504800
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6785
    • ☆☆☆☆☆

    Yes – a company could inflate revenue by sending out goods immediately before the year, which the customer returns immediately after the year end.

    Note that as well as reversing the sale (and trade receivable), the goods returned would have to be included in the valuation of year-end inventory (otherwise cost of goods would be overstated).

    February 12, 2019 at 1:18 pm #504892
    alikhakar
    Member
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    Ok sir ..but what about sales return taking place after the financial statements have been issued ..? Are they adjusted ? Or its just about those sales which are returned immediately after the year end..?

    February 18, 2019 at 11:12 am #505599
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6785
    • ☆☆☆☆☆

    My apologies – I did not see this additional post. By the time the financial statements are issued it should be apparent if there has been any window-dressing of the y/e position. For example, the customer would presumably not pay for goods it didn’t genuinely want.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • arjunsanthosh on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3
  • John Moffat on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy