BUSI 2150U Study Guide - European Cooperation In Science And Technology
Document Summary
Chapter 4: income measurement and objectives of financial reporting. When revenue and the related expenses appear on the income statement. Generally recognition is when a transaction or economic event is recorded in an. When critical event occurs it triggers recognition of revenue and matching of. Using different critical events result in economic consequences for stakeholders. Users need to know how revenue is recognized. The self-interest of the preparer can affect its choice. Too complex to define rule for every transaction/situation. Not possible to create absolute consistenc and comparability. Revenue and expenses recognized in each accounting period. Revenue and expenses only recognized at the end of the contract. Apply where requirements not met, under ifrs. Apply where percentage-of-completion method cannot be used, under gaap for private. Attributes financial information should have to be useful to stakeholders: Then the objectives of the preparer can significantly influence the choice.
