Mastering Revenue Recognition

The core principle of the revenue standard is to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services.

Some of the challenging and judgmental aspects of applying the revenue standard include making significant judgments throughout the five-step process to determine when and how much revenue should be recognized, as well as conducting a critical assessment of the specific facts and circumstances of an entity's arrangement with its customer.

There are five steps involved in the revenue standard process.

<p>The purpose of making judgments in the revenue recognition process is to determine the appropriate recognition of revenue from contracts with customers.</p> Signup and view all the answers

<p>The revenue standard requires a critical assessment of the specific facts and circumstances of an entity's arrangement with its customer.</p> Signup and view all the answers

<p>The purpose of the Negotiable Instruments Act, 1881 is to govern the usage of negotiable instruments in India.</p> Signup and view all the answers

<p>The Negotiable Instruments Act, 1881 was originally drafted in 1866.</p> Signup and view all the answers

<p>The mercantile community raised objections to the numerous deviations from the English Law in the draft of the Act.</p> Signup and view all the answers

<p>The Act was finally passed in 1881.</p> Signup and view all the answers

<p>Yes, the Negotiable Instruments Act, 1881 is still in force in India with significant recent amendments.</p> Signup and view all the answers