Question

Answer the question.
What does accounting standard on Revenue Recognition contain?

Answer 1

The standard lays the provisions regarding the timing of revenue recognition. They are as follows:
$1$. Revenue from sale transaction- when goods have passed fully from the seller to buyer and no uncertainly exists as to the amount of consideration.
$2$. Rendering of services- revenue should be recognised under completed service contract or percentage of composition method provided it is reasonable to expect collection.
$3$. Interest- should be recognised on time basis.
$4$. Royalties - On accrual basis according to terms of agreement.
$5$. Dividends- when right to receive payment is establishment.