3. Revenue Recognition in Special Cases
b. describe general principles of revenue recognition and accrual accounting, specific revenue recognition applications (including accounting for long-term contracts, installment sales, barter transactions, gross and net reporting of revenue), and implications of revenue recognition principles for financial analysis;
c. calculate revenue given information that might influence the choice of revenue recognition method;
What are some of the limited cases where revenue recognition is not done at time of sale?
1. Long term contracts
2. Installment sales
3. Cost recovery
What is the "percentage of completion" method of recognizing revenue?
In the case of a long term contract where the contract can be measured, both IFRS and GAAP require the company to recognize revenue for each period in proportion to the work completed.