IAS 18

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IAS 18 identifies the criteria that need to be met in order to recognise revenue and also the method that should be used to measure the revenue. In addition it provides some practical examples and guidance to help in the application of the standard.

IAS 18 states that if there is uncertainty about the possibility of return, revenue is recognised when the goods have been delivered and the period of time for rejection has expired. Thus goods sold on a sale or return basis should not be recognised as revenue.

*Revenue - the gross inflow of economic benefits during the period arising in the course of the ordinary activities of the business when those inflows result in increases in equity, other than increases relating to contributions from equity participants. 

Revenue should be measured at the fair value of…


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