Revenue Recognition
The term Revenue Recognition (short for Revenue Recognition Principle or Revenue Recognition Policy ) is a form of revenue reporting that is based on US GAAP and IFRS . The Revenue Recognition ( German revenue recognition ) is a special form of realization principle , that is the determination of the time of realization point represents and is reflected in their "Four Big Rules":
- Persuasive evidence of an arrangement exists
- Delivery has occurred or services have been rendered
- The amount to recognize as revenue is fixed and determinable
- Collectability is reasonably assured (and not-refundable)
Revenue ( revenue ) are to IAS 18.14 is essentially to detect if the the the property was transferred related to the goods sold opportunities and risks to the buyer, the revenue can be reliably determined and an economic benefit from the sale is sufficiently probable. In the case of production orders, the realization takes place according to the progress (milestones) on the balance sheet date ( IAS 11 ). The percentage of completion method comes into play here. What are the consequences for the realization of sales and earnings, accounting and valuation methods.
By the revenue recognition which are dividends ( dividends ), interest income ( interest income ), royalties ( royalties ), the Sale of Goods (sale of goods ) and Sale of Services (sale of services ) addressed.
It is of particular importance in project controlling , which in turn has gained in importance through the Sarbanes-Oxley Act of 2002.
Revenue Recognition Project
In May 2002, the IASB and the FASB launched the Revenue Recognition Project as part of the convergence effort . The aim of this project is the creation of uniform sales recognition regulations and the elimination of inconsistencies and weaknesses in the previous regulations. On June 24, 2010, the draft standard Revenue from Contracts with Customers was published. A revised standard Revenue from Contracts with Customers was published on November 14, 2011 .
Individual evidence
- ↑ fasb.org: Revenue Recognition Joint Project of the FASB and IASB
- ↑ fasb.org: Revenue Recognition ( Memento of the original from October 4, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
