IAS 18 REVENUE
1 INTRODUCTION AND SCOPE
IAS 18 prescribes the accounting treatment of revenue. In particular, the issue regarding when to recognize revenue is dealt with. On the basis of the definitions in the Conceptual Framework,1 IAS 18 defines revenue as the gross inflow of economic benefits during the accounting period arising in the course of the ordinary activities of an entity. These inflows have to result in increases in equity other than increases relating to contributions from equity participants. Revenue is a particular form of income and differs from gains that arise, for example, due to fair value changes or on disposal of property, plant, and equipment (Objective of IAS 18, IAS 18.6(a), 18.7, F.70(a), and F.74).
IAS 18 applies to the accounting for revenue arising from the following transactions and events (IAS 18.1):
However, in particular revenue arising from the following transactions and events falls outside the scope of IAS 18 (IAS 18.6):
Moreover, revenue recognition for construction contracts is subject ...