There characterizes revenue as “inflows or different upgrades
There is distinctive between the way revenue is perceived under US GAAP and under IFRS before the presentation of new Accounting standard together issued by FASB and IASB.
Under U.S. GAAP, Concepts Statement 6 characterizes revenue as “inflows or different upgrades of advantages of a assets or settlements of its liabilities (or a mix of both) from conveying or creating products, rendering administrations, or different exercises that constitute the element’s continuous major or focal tasks.” Under IFRS, IAS 18 characterizes revenue as “the total inflow of monetary advantages amid the period emerging over the span of the normal exercises of an element when those inflows result in increments in value, other than expands identifying with commitments from value members.”Under U.
S. GAAP, FASB Concepts Statement No. 5, Recognition, and Measurement in Financial Statements of Business Enterprises, demonstrates that income is perceived when it is acknowledged or feasible and earned. As indicated by passage 83 of the IASB’s Framework for the Preparation and Presentation of Financial Statements, income is perceived when (1) “it is plausible that any future monetary advantage” will stream to the substance and (2) such an advantage can be estimated dependably. Further, section 93 of the IASB Framework showed that revenue ordinarily should be earned before it can be perceived.