In Accordance with IASB (2011)Revenue from Contracts with Customers Discuss

question 46

Essay

In accordance with IASB (2011)Revenue from Contracts with Customers discuss the five steps to recognising revenue.

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Adjusting Entries

Accounting records entries registered at the conclusion of an accounting period for the purpose of assigning revenues and expenses to the period they truly took place.

Accrual Basis

A bookkeeping approach that logs income and expenses at the time they are accrued, without taking into account the timing of the cash flows.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recognized when cash is paid out.