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Concept of accounting....

Accountancy

What is realisation concept in layman's. can anyone's tell me with an any understandable example also for this.....pls anyone..tell....................

Balachandar S

CA Inter

★ 59K+

14-Feb-22 12:57

361

Answers (3)

Best Answer

Revenue is only recognized when it is realized. Sale of goods - goods are manufactured and ready based on order of a customer but title is not transferred. Cannot recognise revenue

Sudha Reddy

CA Final

★ 20K+

14-Feb-22 13:54

Sudha Reddy

Revenue is only recognized when it is realized. Sale of goods - goods are manufactured and ready based on order of a customer but title is not transferred. Cannot recognise revenue

Ok mam...

Thread Starter

Balachandar S

CA Inter

★ 59K+

28-Mar-22 07:26

According to the realization principle, revenues are not recognized unless they are realized. The point at which revenues are realized is circumstantial. For example, revenue is realized when goods are delivered to customers, not when the contract is signed to deliver the goods.

Harish G

CA Inter

★ 2K+

28-Mar-22 09:28