When should revenue be recognised? Are there exceptions to the general

1.	When should revenue be recognised? Are there exceptions to the general rule?
Answer» Revenue is assumed to be realised when a legal right to receive it arises in the point of time when goods have been sold or services has been rendered. There are certain exceptions to the general rule of revenue realisation. 1. In the case of construction projects, revenue is realised before the contract is complete. 2. When the goods are sold on hire purchase, the amount collected in instalments is treated as realised.

When should revenue be recognised? Are there exceptions to the general rule?

Answer»

Revenue is assumed to be realised when a legal right to receive it arises in the point of time when goods have been sold or services has been rendered. There are certain exceptions to the general rule of revenue realisation.

1. In the case of construction projects, revenue is realised before the contract is complete.

2. When the goods are sold on hire purchase, the amount collected in instalments is treated as realised.

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When should revenue be recognised? Are there exceptions to the general rule?

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