Issues relating to the recognition of revenue
Accurate and meaningful reporting relies heavily on the matching process. This requires a clear understanding of when to recognise income. This form is required to identify the issues in your business that impact on the timing of recognition of income.
Does your business invoice customers prior to products/services being delivered? Examples of this include customer deposits, subscriptions and some progress payments.
Month end timing
The start/end of reporting periods is a sensitive time for matching requirements. Many issues need to be addressed including sales invoices being only for products/services supplied during the reporting period. Goods or services to be provided in a later reporting period may have been partially fulfilled (work in process). If these costs have not been capitalised, the income will need to be recognised in proportion to the level of fulfilment completion.
Should be Empty: