Why is revenue recognition important
IFRS revenue recognition
For many companies and their stakeholders, sales are a crucial parameter.
When is the right point in time for revenue recognition, which usually also triggers profit recognition? Are expenses associated with the realization of sales such as discounts, interest on arrears or bad debts to be shown as "sales" or elsewhere in the income statement? Is the “turnover” according to IFRS equal to the turnover according to UGB and / or the same as the turnover for income tax purposes and / or the same as the turnover for turnover tax purposes? Is the turnover attributable to your company, or are you just an "agent"?
In addition, many companies try to differentiate themselves from the competition through combined products, which then raises the question of which service and which share of sales should be recorded for which service?
Our solution, your advantages
Our specialists have already dealt intensively in advance with the new IFRS standard for revenue recognition and the two related drafts. We have already identified “sticking points” with regard to the new standard for many industries and have thought ahead of solutions.
Together with your employees, we can analyze your high-turnover business models and your current accounting in terms of their conformity with the new standard, but also with UGB and sales tax regulations, and quickly identify any need for adjustments.
Thus we lay the foundation for a correct realization of sales even after the introduction of the new standard. Depending on the characteristics in your company, the accounting guidelines, the ERP systems and possibly also the business model or its contractual basis may have to be adapted in order to map your business as best as possible in the current regulatory systems and to keep administrative expenses to a minimum.
Here, too, we can provide efficient assistance with the KPMG experience on a national and international level.
- Men opt for nursing courses
- Who buys scarves
- How can we live without being selfish?
- How do I send back flying monkeys
- The PTE exam is difficult these days
- When do we deploy our national flag?
- Who are Gandharvas Hindu Mythology
- Why did you pinn this answer
- Which is more important skills or degree
- Why don't Georgians like Armenians
- When to use OOP is a bad idea
- More aggressive people succeed in life
- Russia is becoming more like the West
- Why do professional skills need a job
- When should I start paying dividends?
- How many types of diamonds are there
- Gold is used to make jewelry
- How can you identify the entrepreneurial behavior
- Why Mahatma Gandhi was anti-national
- What is the job of psychology
- How do I fold a wheelchair
- What's your haircut down there
- You can buy a new SIM card
- Can I get married after sixty