Article 1327978908940 Revenue Recognition in Special Cases
#income #recognition #revenue #statement
3.2. Revenue Recognition in Special Cases
The general principles discussed above are helpful for dealing with most revenue recognition issues. There are some instances where revenue recognition is more difficult to determine. For example, in limited circumstances, revenue may be recognized before or after goods are delivered or services are rendered, as summarized in Exhibit 6.
Exhibit 6. Revenue Recognition in Special Cases
Before Goods Are Fully Delivered or Services Completely Rendered At the Time Goods Are Delivered or Services Rendered After Goods Are Delivered or Services Rendered For example, with long-term contracts where the outcome can be reliably measured, the percentage-of-completion method is used. Recognize revenues using normal revenue recognition criteria. For example, with real estate sales where there is doubt about the buyer’s ability to complete payments, the installment method and cost recovery method are appropriate.
The following sections discuss revenue recog