When should revenue be recognised? Are there exceptions to the general rule?
Revenue should be recognised only when it realised,that's means when sales take place either in cash or credit and/or right to receive income from any source is established.As a Example-rent for the month of May even if received in July month will be treated as revenue of the financial year ending 31st March.
There are exceptions to this rule.
Rental purchases: When the rental system is happy, it receives the property as income.
Construction time: Building construction is the time period in the sound at the time of construction of hives. Income should be based on the basis of certificate.
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