Greetings. I am not familiar with UK revenue recognition rules, and would much appreciate if someone could send me a useful link(s). Here is an example of what I need to research.
In the United States, I had to comply by rules that forced me to hold back revenue if a product was not fully implemented by a customer. This applied to items that are not plug-and-play and require installation services. In the software sector, it would be a similar situation for anything that was not shrink wrap. I would only be able to release the full amount when I had certification that the customer had a fully operable piece of equipment or software.
In any event, if anyone can connect me to a place where I can find this type of guidance, I'd be much obliged.
we're not too dissimilar to the other side of the pond as Enron pretty much identified the same issues the world over causing all bodies to pretty much knee jerk reaction similar responses.
The main UK GAAP standardards that you would need to read in connection with revenue recognition would be :
Urgent Issues Task force Abstract 40 - Revenue Recognition for service contracts.
FRS5 Application note G
Here are some handy links to get you started with UKGAAP revenue Recognition:
As the IASB is seeking to create a set of international standards which are principles based, internally consistent and internationally converged you should find great similarity between FRS18 and your national standards which will have been considered when setting the standard.
What's the feeling amongst professionals in the US? Can you see yourselves heading towards adoption of international standards?
I think that as the world is shrinking to a single market place it would be pretty good if the whole world adopted the same principles based set of standards.
Anyway, hope that the above answer helps to get you started,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
