7

Accounting for Revenue

CHAPTER OBJECTIVES

This chapter will help the readers to:

  • Identify issues involved in revenue recognition from sales of goods, provisions of services and also long-term contracts.
  • Apply accrual principle on revenue recognition.
  • Analyze the impact of uncertainty on revenue recognition.
  • Get familiarity with the key requirement of Ind AS 18 ‘Revenue’, Ind AS 11 ‘Construction Contracts’, and Ind AS 21 ‘The effects of changes in Foreign Exchange Rates’ as applicable to revenue recognition.
7.1 REVENUE

The expression ‘revenue’ means the consideration earned by an enterprise by sale of goods or provision of services in the ordinary course of business. Revenue may also be earned by an enterprise by letting others use ...

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