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Another variation of this example is that the same lawn mowing business receives advance payment from a customer for a service to be delivered next month.
Revenue recognition principle singapore. Current singapore frs 18 prescribes the requirements for the recognition of revenue in an entity s financial statements. It is time for entities to get a head start on implementation. The revenue recognition principle would dictate that this amount be treated as a revenue item for the current period. By the staff of the singapore accounting standards council asc june 2014.
Even though the cash payment has been received the transaction would not. Revenue can take various forms such as sales of goods provision of services royalty fees franchise fees management fees dividends interest subscriptions and so on.
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