Revenue recognition意思
"Revenue recognition" is a generally accepted accounting principle (GAAP) that refers to the process of recognizing or acknowledging the revenue a company earns from its sales transactions. The goal of revenue recognition is to record revenue when it is realized or realizable and earned, not when the cash is received.
In accounting, revenue is recognized when a company satisfies the following criteria:
-
Persuasive Evidence of an Arrangement: There must be evidence of a contract or agreement with the customer.
-
Delivery: The company must have delivered the goods or services to the customer.
-
Collectability: The company must have the ability to collect payment from the customer.
-
Recognition Criteria Met: The revenue recognition criteria must be met, which means the company can recognize the revenue.
The revenue recognition principle is important because it helps to ensure that a company's financial statements accurately reflect its financial performance. By recognizing revenue when it is earned, rather than when cash is received, the company's financial statements provide a more accurate picture of its financial position.
The revenue recognition principle is also important because it helps to ensure that companies are in compliance with GAAP. GAAP is a set of accounting standards that are used by companies in the United States. Compliance with GAAP is important because it helps to ensure that the company's financial statements are accurate and reliable.