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Gaap specifies that revenue should not be recognized until the revenue is either realized or realizable and earned.
Revenue recognized under gaap. Revenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized. Under ifrs revenue is usually recognized when the risks and rewards associated with the goods or services have been transferred to the customer. In theory there is a wide range of potential points at which revenue can be recognized. The revenue recognition principle using accrual accounting.
This guide addresses recognition principles for both ifrs and u s. Revenue recognition is a generally accepted accounting principle gaap that stipulates how and when revenue is to be recognized.
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