GlossaryDefinition

Revenue recognition

Deciding when and how much revenue to record, which is not the same question as when you invoice or get paid. The prevailing frameworks (ASC 606 under US GAAP and IFRS 15) work through identifying the contract and its distinct promises, setting a transaction price, allocating it across those promises, and recognising each as it is delivered; local frameworks elsewhere may differ, and any specific treatment is a matter for your auditors.

Where it appears

See also