Revenue Recognition
Sales Basis . FASB 5 :
:
1-
Persuasive evidence of an arrangements exists.
2-
3-
4-
Collectability is reasonably assured
Departure from the sale basis :
1- High degree of certainty
2- ɡ .
Does not represent substantial completion of the earning process .

? ?
(SFAC No.3,Par.83 ) :
Recognition is the process of formally recording or incorporating an item in the accounts and financial statements of any entity

( SFAC.No.5,Par,6. )
Recognition includes depiction of an item in both words and numbers with the amount included in the totals of the financial statements, for an assets or liability, recognition involves recording not only acquisition or incurrence of the item, but also later change in it, including removal from the financial statement, previously recognized.

ߡ ϡ ( ) .
:1 Recognition
2-Realization
Realization (SFAC No.3,Par.83)
Realization is the process of converting noncash resources and rights into money and is most precisely used in accounting and financial reporting to refer to sales of assets for cash or claims to cash .
. (Securities ) ( Revenue recognition ) :
1-
2- (It is earned )
Realized ϡ .
Realizable .
( Earned) .
Revenue are earned when entity has substantially accomplished what is must do to be entitled to the benefits represented by the revenue, that is, when the earning process is complete or virtually complete .


Revenue recognition Classified by Nature of Transactions

Type of transaction
Sale Of asset other than inventory Permitting use of an asset Rendering a service Sale of production from inventory
Description of revenue
Gain or loss on disposition Revenue from interest,rents,and royalties Revenue from fees or services Revenue from sale
Timing of revenue recognition
Date of sale or trade-in At time passes or assets are used Services performed and billable Date of sale
(date of delivery)


ɡ :
1-
2-
3-
4-