Revenue is generally discussed in accounting literature in terms of inflows of assets to an enterprise which occur as a result of outflows of goods and services from the enterprise. For this reason, the concept of revenue has normally been associated with specific accounting procedures which were primarily directed towards determining the timing and measurement of revenue in the context of the historical cost double-entry system. For example, APB Statement No. 4 defined revenue as the ‘gross increases in assets or gross decreases in liabilities recognized and measured in conformity with generally accepted accounting principles that result from those types of profit-directed activities of an enterprise that can change owners’ equity’.1 Consequently, the accounting principles which evolved focused on determining when transactions should be recognised in the financial statements, what amounts were involved in each transaction, how these amounts should be classified and how they should be allocated between accounting periods.
Weitere Kapitel dieses Buchs durch Wischen aufrufen
- Revenue recognition
- Palgrave Macmillan UK
- Chapter 3
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