Revenue Recognition

Revenue-recognition review examines when and how contractual income should be reported under the applicable accounting framework.

Business owners and finance teams improving recurring accounting, reporting or administration can use this service to clarify a particular issue. A useful starting question is: “Does an invoice date always determine revenue recognition?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.

The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.

• Analyse contracts promises and payment terms.
• Assess timing measurement and allocation questions.
• Prepare accounting policies and supporting schedules.

Start with the records below where available. They help establish the facts before a more specific checklist is agreed.

• Customer contracts.
• Pricing terms.
• Delivery evidence.
• Billing records.

Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.

Issuing an invoice or receiving cash does not alone determine when revenue should be recognised.

1. Define the question: analyse contracts promises and payment terms, using the available customer contracts and the facts you provide.
2. Examine the evidence: assess timing measurement and allocation questions. Record unresolved information and the assumptions that affect the analysis.
3. Agree the action: prepare accounting policies and supporting schedules. Set the required deliverables, responsible owners and any follow-up or external dependency.

The proposal for Revenue Recognition sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of customer contracts, pricing terms, delivery evidence and billing records affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.

• Account Reconciliation Services
• Accounting Software Selection & Setup
• Financial Process Outsourcing Services
• Finance & Accounting Outsourcing

Share a short summary of your Revenue Recognition requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.

• Request a Revenue Recognition consultation
• About BIATConsultant