BU547 Lecture Notes - Lecture 2: Profit Margin, Revenue Recognition
Document Summary
Revenue: ifrs 15 statement of profit and loss. Tip: for those writing the canadian cpa board exams (cfe exams), revenue recognition is an extremely important topic and is always found on the exam. Revenue is found on the statement of profit and loss (ifrs). Revenues are income that arise from ordinary activities such as: sales, fees, interest, and royalties. An excerpt from the statement of profit and loss, below, shows where and how revenue is presented. Operating revenue includes revenues that are brought in from regular operating activities. Other revenue includes revenues that are brought into the entity by means other than regular operations. For example, entities may earn revenues through interest earnings, leasing extra office space, etc as long as these earnings are not part of their regular business operations, they will be considered other revenue. Revenue and other revenue are treated the same for accounting purposes. The difference is simply a matter of labeling.
