Scott Page 52 Question 22

According to the CICA handbook section 3400 and IFRS IAS 18, the gross from the deal of the goods shall be recognise when the entity has been transferred to the buyer the significant risk and rewards of ownership of the goods. The relevancy and dependableness trade-off relationship is also involved in gross enhancement designation. The relevance will development when the receipts is recognized early. When the future expected cash flow is predicted early, this cognition increase the relevance of revenue acknowledgment. The most relevant forefront of revenue recognition is the earlier signify of the entity transferring procedure. Manufacturing firms: The earliest point is the start of the manufacturing process. It whitethorn even apply to when the manufacturer bribe the unrefined material. Oil and artillery exploration firms: The reserve recognition explanation (RRA) has been used to prove oil and gas militia at their present values. The earliest point is w hen oil and gas reserves are proven. Retail firms: The earliest point is when the goods are purchased from the manufacturer. Firms with semipermanent dumbfounds: CICA handbook section 3400 allow for the use of all a dowery of completion or a terminate contract method to recognize the revenue of grand-term contracts. Under IFRS, pine term contracts must be recognized using the pct completion method or the cost recovery method. The earliest point for long-term contracts will be when the contract is signed. The dependableness will decrease, as the possibility that the revenue recognized early, may fail to be realized or collected. The reliability of revenue recognition reflects the collection of future cash flows. The most recognize point is the cash that will be received afterward on the entity transferred to the buyer. b. Lucent has been overly aggressive in recognition revenue. forswear the definition of revenue recognition from IAS 18, revenue from sale of goods should be recognized when the! significant risks and rewards...If you want to get a replete(p) essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper