Vous êtes sur la page 1sur 5

7/11/2016

RevenuerecognitionWikipedia,thefreeencyclopedia

Revenuerecognition
FromWikipedia,thefreeencyclopedia

Therevenuerecognitionprincipleisacornerstoneofaccrualaccountingtogetherwithmatchingprinciple.They
bothdeterminetheaccountingperiod,inwhichrevenuesandexpensesarerecognized.Accordingtotheprinciple,
revenuesarerecognizedwhentheyarerealizedorrealizable,andareearned(usuallywhengoodsaretransferredor
servicesrendered),nomatterwhencashisreceived.Incashaccountingincontrastrevenuesarerecognized
whencashisreceivednomatterwhengoodsorservicesaresold.
Cashcanbereceivedinanearlierorlaterperiodthanobligationsaremet(whengoodsorservicesaredelivered)
andrelatedrevenuesarerecognizedthatresultsinthefollowingtwotypesofaccounts:
Accruedrevenue:Revenueisrecognizedbeforecashisreceived.
Deferredrevenue:Revenueisrecognizedaftercashisreceived.
Revenuerealizedduringanaccountingperiodisincludedintheincome.

Contents
1 InternationalFinancialReportingStandardscriteria
2 Generalrule
2.1 Revenueversuscashtiming
2.2 Advances
3 Exceptions
3.1 Revenuesnotrecognizedatsale
3.2 Revenuesrecognizedbeforesale
3.2.1 Longtermcontracts
3.2.2 Completionofproductionbasis
3.3 RevenuesrecognizedafterSale
4 NewRevenueRecognitionStandard
5 References
6 Sources

InternationalFinancialReportingStandardscriteria
TheCriticalEventApproach:IFRSprovidesfivecriteriaforidentifyingthecriticaleventforrecognizingrevenue
onthesaleofgoods
1.Risksandrewardshavebeentransferredfromthesellertothebuyer
2.Thesellerhasnocontroloverthegoodssold
3.Collectionofpaymentisreasonablyassured
4.Theamountofrevenuecanbereasonablymeasured
5.Costsofearningtherevenuecanbereasonablymeasured
ThefirsttwocriteriamentionedabovearereferredtoasPerformance.Performanceoccurswhenthesellerhas
donemostorallofwhatitissupposedtodotobeentitledforthepayment.E.g.:Acompanyhassoldthegoodand
thecustomerwalksoutofthestorewithnowarrantyontheproduct.Thesellerhascompleteditsperformance
sincethebuyernowownsgoodandalsoalltherisksandrewardsassociatedwithit.Thethirdcriterionisreferred
https://en.wikipedia.org/wiki/Revenue_recognition

1/5

7/11/2016

RevenuerecognitionWikipedia,thefreeencyclopedia

toasCollectability.Thesellermusthaveareasonableexpectationofbeingpaid.Anallowanceaccountmustbe
createdifthesellerisnotfullyassuredtoreceivethepayment.Thefourthandfifthcriteriaarereferredtoas
Measurability.DuetoMatchingPrinciple,thesellermustbeabletomatchexpensestotherevenuestheyhelped
inearning.Therefore,theamountofRevenuesandExpensesshouldbothbereasonablymeasurable

Generalrule
Receivedadvancesarenotrecognizedasrevenues,butasliabilities(deferredincome),untiltheconditions(1.)and
(2.)aremet.
1.Revenuesarerealizedwhencashorclaimstocash(receivable)arereceivedinexchangeforgoodsor
services.Revenuesarerealizablewhenassetsreceivedinsuchexchangearereadilyconvertibletocashor
claimtocash.
2.Revenuesareearnedwhensuchgoods/servicesaretransferred/rendered.Bothsuchpaymentassuranceand
finaldeliverycompletion(withaprovisionforreturns,warrantyclaims,etc.),arerequiredforrevenue
recognition.
Recognitionofrevenuefromfourtypesoftransactions:
1.Revenuesfromsellinginventoryarerecognizedatthedateofsaleofteninterpretedasthedateofdelivery.
2.Revenuesfromrenderingservicesarerecognizedwhenservicesarecompletedandbilled.
3.Revenuefrompermissiontousecompany'sassets(e.g.interestsforusingmoney,rentforusingfixedassets,
androyaltiesforusingintangibleassets)isrecognizedastimepassesorasassetsareused.
4.Revenuefromsellinganassetotherthaninventoryisrecognizedatthepointofsale,whenittakesplace.

Revenueversuscashtiming
Accruedrevenue(oraccruedassets)isanassetsuchasproceedsfromadeliveryofgoodsorservices,atwhich
suchincomeitemisearnedandtherelatedrevenueitemisrecognized,whilecashforthemistobereceivedina
latteraccountingperiod,whenitsamountisdeductedfromaccruedrevenues.Itsharescharacteristicswith
deferredexpense(orprepaidexpense,orprepayment)withthedifferencethatanassettobecoveredlateriscash
paidouttoacounterpartforgoodsorservicestobereceivedinalatterperiodwhentheobligationtopayis
actuallyincurred,therelatedexpenseitemisrecognized,andthesameamountisdeductedfromprepayments
Deferredrevenue(ordeferredincome)isaliability,suchascashreceivedfromacounterpartforgoodsorservices
whicharetobedeliveredinalateraccountingperiod,whensuchincomeitemisearned,therelatedrevenueitemis
recognized,andthedeferredrevenueisreduced.Itsharescharacteristicswithaccruedexpensewiththedifference
thataliabilitytobecoveredlaterisanobligationtopayforgoodsorservicesreceivedsolofromacounterpart,
whilecashforthemistobepaidoutinalaterperiodwhenitsamountisdeductedfromaccruedexpenses.
Forexample,acompanyreceivesanannualsoftwarelicensefeepaidoutbyacustomerupfrontontheJanuary1.
Howeverthecompany'sfiscalyearendsonMay31.So,thecompanyusingaccrualaccountingaddsonlyfive
monthsworth(5/12)ofthefeetoitsrevenuesinprofitandlossforthefiscalyearthefeewasreceived.Therestis
addedtodeferredincome(liability)onthebalancesheetforthatyear.

Advances
Advancesarenotconsideredtobeasufficientevidenceofsale,thusnorevenueisrecordeduntilthesaleis
completed.Advancesareconsideredadeferredincomeandarerecordedasliabilitiesuntilthewholepriceispaid
andthedeliverymade(i.e.matchingobligationsareincurred).

https://en.wikipedia.org/wiki/Revenue_recognition

2/5

7/11/2016

RevenuerecognitionWikipedia,thefreeencyclopedia

Exceptions
Revenuesnotrecognizedatsale
Therulesaysthatrevenuefromsellinginventoryisrecognizedatthepointofsale,butthereareseveral
exceptions.
Buybackagreements:buybackagreementmeansthatacompanysellsaproductandagreestobuyitback
aftersometime.Ifbuybackpricecoversallcostsoftheinventoryplusrelatedholdingcosts,theinventory
remainsontheseller'sbooks.Inplain:therewasnosale.
Returns:companieswhichcannotreasonablyestimatetheamountoffuturereturnsand/orhaveextremely
highratesofreturnsshouldrecognizerevenuesonlywhentherighttoreturnexpires.Thosecompaniesthat
canestimatethenumberoffuturereturnsandhavearelativelysmallreturnratecanrecognizerevenuesat
thepointofsale,butmustdeductestimatedfuturereturns.

Revenuesrecognizedbeforesale
Longtermcontracts
Thisexceptionprimarilydealswithlongtermcontractssuchasconstructions(buildings,stadiums,bridges,
highways,etc.),developmentofaircraft,weapons,andspaceexplorationhardware.Suchcontractsmustallowthe
builder(seller)tobillthepurchaseratvariouspartsoftheproject(e.g.every10milesofroadbuilt).
Thepercentageofcompletionmethodsaysthatifthecontractclearlyspecifiesthepriceandpayment
optionswithtransferofownership,thebuyerisexpectedtopaythewholeamountandthesellerisexpected
tocompletetheproject,thenrevenues,costs,andgrossprofitcanberecognizedeachperiodbaseduponthe
progressofconstruction(thatis,percentageofcompletion).Forexample,ifduringtheyear,25%ofthe
buildingwascompleted,thebuildercanrecognize25%oftheexpectedtotalprofitonthecontract.This
methodispreferred.However,expectedlossshouldberecognizedfullyandimmediatelydueto
conservatismconstraint.Apartfromaccountingrequirement,thereisaneedforcalculatingthepercentageof
completionforcomparingbudgetsandactualstocontrolthecostoflongtermprojectsandoptimize
Material,Man,Machine,Moneyandtime(OPTM4).Themethodusedfordeterminingrevenueofalong
termcontractcanbecomplex.Usuallytwomethodsareemployedtocalculatethepercentageofcompletion:
(i)bycalculatingthepercentageofaccumulatedcostincurredtothetotalbudgetedcost.(ii)bydetermining
thepercentageofdeliverablecompletedasapercentageoftotaldeliverable.Thesecondmethodisaccurate
butcumbersome.Toachievethis,oneneedsthehelpofasoftwareERPpackagewhichintegratesFinancial,
inventory,HumanresourcesandWBS(Workbreakdownstructure)basedplanningandschedulingwhile
bookingofallcostcomponentsshouldbedonewithreferencetooneoftheWBSelements.Therearevery
fewcontractingERPsoftwarepackageswhichhavethecompleteintegratedmoduletodothis.
Thecompletedcontractmethodshouldbeusedonlyifpercentageofcompletionisnotapplicableorthe
contractinvolvesextremelyhighrisks.Underthismethod,revenues,costs,andgrossprofitarerecognized
onlyaftertheprojectisfullycompleted.Thus,ifacompanyisworkingonlyononeproject,itsincome
statementwillshow$0revenuesand$0constructionrelatedcostsuntilthefinalyear.However,expected
lossshouldberecognizedfullyandimmediatelyduetoconservatismconstraint.
Completionofproductionbasis
Thismethodallowsrecognizingrevenuesevenifnosalewasmade.Thisappliestoagriculturalproductsand
minerals.Thereisareadymarketfortheseproductswithreasonablyassuredprices,theunitsareinterchangeable,
andsellinganddistributingdoesnotinvolvesignificantcosts.

https://en.wikipedia.org/wiki/Revenue_recognition

3/5

7/11/2016

RevenuerecognitionWikipedia,thefreeencyclopedia

RevenuesrecognizedafterSale
Sometimes,thecollectionofreceivablesinvolvesahighlevelofrisk.Ifthereisahighdegreeofuncertainty
regardingcollectibilitythenacompanymustdefertherecognitionofrevenue.Therearethreemethodswhichdeal
withthissituation:
Installmentsalesmethodallowsrecognizingincomeafterthesaleismade,andproportionatelytothe
productofgrossprofitpercentageandcashcollectedcalculated.Theunearnedincomeisdeferredandthen
recognizedtoincomewhencashiscollected.[1]Forexample,ifacompanycollected45%oftotalproduct
price,itcanrecognize45%oftotalprofitonthatproduct.
Costrecoverymethodisusedwhenthereisanextremelyhighprobabilityofuncollectablepayments.
Underthismethodnoprofitisrecognizeduntilcashcollectionsexceedtheseller'scostofthemerchandise
sold.Forexample,ifacompanysoldamachineworth$10,000for$15,000,itcanstartrecordingprofitonly
whenthebuyerpaysmorethan$10,000.Inotherwords,foreachdollarcollectedgreaterthan$10,000goes
towardsyouranticipatedgrossprofitof$5,000.
Depositmethodisusedwhenthecompanyreceivescashbeforesufficienttransferofownershipoccurs.
Revenueisnotrecognizedbecausetherisksandrewardsofownershiphavenottransferredtothebuyer.[2]
Generallyacceptedaccountingprinciples
Comparisonofcashandaccrualmethodsofaccounting
Vendorspecificobjectiveevidence

NewRevenueRecognitionStandard
OnMay28,2014,theFASBandIASBissuedconvergedguidanceonrecognizingrevenueincontractswith
customers.ThenewguidanceisheraldedbytheBoardsasamajorachievementineffortstoimprovefinancial
reporting.[3]TheupdatewasissuedasAccountingStandardsUpdate(ASU)201409.Itwillbepartofthe
AccountingStandardsCodification(ASC)asTopic606:RevenuefromContractswithCustomers(ASC606),and
supersedestheexistingrevenuerecognitionliteratureinTopic605issuedbyFASB.[4]ASC606iseffectivefor
publicentitiesforthefirstinterimperiodwithinannualreportingperiodsbeginningafterDecember15,2017
(nonpubliccompanieshaveanadditionalyear).[5]
Thenewstandardaimsto:
Removeinconsistenciesandweaknessesinrevenuerequirements
Provideamorerobustframeworkforaddressingrevenueissues
Improvecomparabilityofrevenuerecognitionpracticesacrossentities,industries,jurisdictions,andcapital
markets
Providemoreusefulinformationtousersoffinancialstatementsthroughimproveddisclosurerequirements
Simplifythepreparationoffinancialstatementsbyreducingthenumberofrequirementstowhichanentity
mustrefer[4]
ThenewrevenueguidancewasissuedbytheIASBasIFRS15.TheIASBsstandard,asamended,iseffectivefor
thefirstinterimperiodwithinannualreportingperiodsbeginningonorafterJanuary1,2018,withearlyadoption
permitted.[6]

References
1.Revsine2002,p.110
2.FinancialAccountingStandardsBoard(2008)."StatementofFinancialAccountingStandardsNo.66,Paragraph65"
(PDF).RetrievedMarch23,2009.
3."RevenueRecognition" .www.fasb.org.Retrieved20151213.
https://en.wikipedia.org/wiki/Revenue_recognition

4/5

7/11/2016

RevenuerecognitionWikipedia,thefreeencyclopedia

4."OverviewofASC606RevenueHub" .RevenueHub.Retrieved20151213.
5.PricewaterhouseCoopers."Inbrief:FASBfinalizesoneyeardeferralofthenewrevenuestandard" .PwC.Retrieved
20160518.
6.PricewaterhouseCoopers."Inbrief:IASBproposeschangestorevenuestandardmoreFASBproposalscomingsoon"
.PwC.Retrieved20160518.

Sources
Revsine,Lawrence(2002),Financialreporting&analysis ,PrenticeHall,ISBN9780130323514
Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Revenue_recognition&oldid=720988040"
Categories: GenerallyAcceptedAccountingPrinciples Accountingterminology
Thispagewaslastmodifiedon19May2016,at03:38.
TextisavailableundertheCreativeCommonsAttributionShareAlikeLicenseadditionaltermsmayapply.
Byusingthissite,youagreetotheTermsofUseandPrivacyPolicy.Wikipediaisaregisteredtrademark
oftheWikimediaFoundation,Inc.,anonprofitorganization.

https://en.wikipedia.org/wiki/Revenue_recognition

5/5

Vous aimerez peut-être aussi