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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 18
Revenue
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 18 |
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IAS 18
Revenue Issued in
December 1993: replaced December 1982 version of IAS 18 Recent amendment:
by IAS 1 revised in September 2007 |
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What is
revenue? Revenue is (1) the gross inflow of economic benefits (2) occurring in the course of ordinary activities (3) and such inflow increases the equity --> an increase in equity --> due to the contributions from equity participants --> is not revenue |
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Revenue is
measured --> at the fair value of the consideration --> received or receivable |
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Revenue
from the sale of goods --> recognised when all of the following conditions are met: (1) significant risks and rewards of ownership are transferred (2) revenue amount can be reliably measured (3) costs can be reliably measured (4) inflow of economic benefits is probable (5) no continuing managerial involvement and no effective control over the goods sold |
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Interest,
royalties and dividends --> recognised when all of the following conditions are met: (1) inflow of economic benefits is probable (2) revenue amount can be reliably measured |
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Interest
revenue --> recognised using effective interest method |
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Royalties --> recognised on an accrual basis |
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Dividends --> recognised when --> the shareholder's right (to receive payment) is established |
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IAS
18 Technical Notes |
