What is the specific time and method of revenue recognition?

Conditions for recognition of revenue from the sale of goods.

a. The enterprise has transferred the main risks and rewards of the ownership of the goods to the buyer;

If you are not satisfied, the time specified for the return of goods shall be within the specified time; If the installation period is specified for the goods to be installed, it shall be within the installation period; consignment and consignment of goods; If the goods sold do not meet the requirements stipulated in the contract in terms of quality, variety, specifications, etc., and are not compensated according to the normal warranty terms, and therefore are still liable, they cannot be treated as income.

b. The enterprise neither retains the right to continue management, which is usually associated with ownership, nor does it exercise control over the goods sold;

c. The economic benefits related to the transaction can flow into the enterprise;

If the goods are sold and the probability of recovering the money is not likely to be realized, it cannot be recognized as revenue. If, after the goods are shipped, it is learned that the buyer has incurred a significant loss, and it is very difficult to recover the money; Or when exporting goods, it is not certain whether the country** where the importing enterprise is located allows the remittance of money, etc. However, when it is judged that the money cannot be recovered, reliable evidence should be provided.

d. The associated revenues and costs can be reliably measured.

According to the principle of matching income to expenses, revenues and costs related to the same sale should be recognized in the same accounting period. As a result, costs cannot be reliably measured, and associated revenues cannot be recognized, even if other conditions have been met. If the price has been received, the price received shall be recognized as a liability.

When the goods are dispatched, whether or not they are received, they are realized as income.

The new accounting system stipulates that when an enterprise sells goods, it can recognize revenue if it meets the following four conditions at the same time:

1) The enterprise has transferred the main risks and rewards of ownership of the goods to the buyer;

2) the enterprise neither retains the right to continue management, which is normally associated with ownership, nor does it exercise control over the goods sold;

3) the economic benefits related to the transaction can flow into the enterprise;

4) The associated revenues and costs can be reliably measured.

The principle of revenue recognition ——— substance over form.

In the Income Guidelines, income is defined as "the total inflow of economic benefits arising from the sale of goods, the provision of services and the use of the assets of the enterprise, and does not include payments collected on behalf of third parties or customers".

From this definition, it can be broken down into three important characteristics of income, first, it is the economic benefit formed by daily activities; Second, this inflow of profits is obtained by the sale of goods, the provision of labor services and the use of the assets of the enterprise. Thirdly, the inflow of economic benefits does not include payments collected on behalf of others. In this way, accountants are able to recognize revenue from these three characteristics.

According to the relevant provisions of the Notice on Several Issues Concerning the Recognition of Enterprise Income Tax Income (Guo Shui Han [2008] No. 875):

1. Except as otherwise provided in the Enterprise Income Tax Law and the Implementing Regulations, the recognition of enterprise sales revenue must follow the principle of accrual accounting and the principle of substance over form.

2. At the end of each tax period, if the result of the labor service transaction can be reliably estimated, the completion progress (completion percentage) method shall be used to confirm the labor service income.

3. If an enterprise sells its own commodities in a combination of buy one and get one free, it is not a donation, and the total sales amount shall be apportioned and recognized according to the proportion of the fair value of each commodity.

China stipulates that China is basically the same as the International Accounting Standards Board in terms of the standards for recognition of labor income. Transactions for the provision of services should be measured according to the completed contract method or the percentage of completion method, depending on which method can be used to link the recognized revenue to the amount of work completed more accurately, i.e., to follow the principle of relevance. The specific regulations in our country are:

If the period during which services are rendered spans more than one accounting period, and the results of transactions in which services are rendered can be reliably estimated, the enterprise should recognize revenue on the percentage of completion method.

The 4 conditions under which the outcome of a trade can be reliably estimated are:

The total revenue and total cost of the contract can be reliably determined;

the price associated with the transaction can be recovered;

The procedure for the completion of the service can be reliably determined;

The costs that have already been completed can be reliably measured. If the above conditions are not met, the enterprise should recognize the revenue according to the completion contract method. Japan falls into this category of countries that prefer the "principle of prudence" and advocate the application of the law of completion of contracts in all circumstances.

According to Article 4 of Chapter 2 of Revenue No. 14 of Accounting Standards, revenue from the sale of goods can only be recognized if the following conditions are met at the same time:

1) The enterprise has transferred the main risks and rewards of the ownership of the goods to the purchaser;

ii) the enterprise neither retains the right to continue management, which is normally associated with ownership, nor does it exercise effective control over the goods sold;

iii) the amount of income can be reliably measured;

4) the relevant economic benefits are likely to flow into the enterprise;

v) The associated costs incurred or to be incurred can be reliably measured.

The concept of income:

China's current system adopts the concept of income in a narrow sense, that is, income refers to the total inflow of economic interests formed by enterprises in their daily activities, which will lead to an increase in owners' equity and have nothing to do with the capital invested by owners. The income involved includes income from the sale of goods, income from the provision of services and income from the transfer of the right to use assets.

Principles of revenue recognition:

Revenue from the sale of goods can only be recognized if the following four conditions are met:

1) The enterprise has transferred the main risks and rewards of the ownership of the goods to the buyer.

Risks and rewards in the ownership of goods.

Determination of whether the main risks and rewards of commodity ownership have been transferred.

2) the enterprise neither retains the right to continue management, which is normally associated with ownership, nor does it exercise control over the goods sold;

3) The economic benefits associated with the transaction are likely to flow into the business.

The economic benefits related to the transaction are mainly manifested in the price of the goods sold;

In practice, if the goods sold by the enterprise meet the requirements stipulated in the contract or agreement, and the invoices and bills have been delivered to the buyer, and the buyer has also promised to pay, it means that the price of the goods sold can be recovered.

If the enterprise judges that the price cannot be recovered, it should provide reliable evidence.

4) The associated revenues and costs can be reliably measured.

Whether income can be reliably measured is the basic premise of revenue recognition;

Costs cannot be reliably measured, and revenue cannot be recognized even if all other conditions have been met.

Finally, the recognition of revenue should at least meet the following conditions: first, the economic benefits related to the income should be likely to flow into the enterprise; Second, the result of the inflow of economic benefits into the enterprise will lead to an increase in assets or a decrease in liabilities; Third, the inflow of economic benefits can be reliably measured. These two points are what everyone must keep in mind in the intermediate accounting title.

According to the provisions of the tax law, the principle of revenue recognition has the following points: the first is the invoice to recognize the income, the second is the issuance of the goods, and the ownership of the goods is almost confirmed to be owned by the consignee, the third is to recognize the revenue according to the contract, and the fourth is to recognize the revenue when the payment is received according to the contract. Revenue is recognized on an accrual basis.

The principle of substance over form. I hope the above content is helpful to you, thank you!

The recognition time of enterprise income tax income is different in different ways, as follows:

1. Confirm when completing the collection procedures by means of collection and acceptance.

2. Confirm when the goods are issued in the form of advance payment.

3. Commercial judgment products need to be installed and inspected.

1) General: Confirmation when the buyer accepts the product and the installation and inspection is completed.

2) The installation process bending sequence is relatively simple: confirm when the product is issued.

4. If the consignment is entrusted by paying the handling fee, it will be confirmed when the consignment list is received.

5. If the installment payment method is adopted, it shall be confirmed according to the payment date agreed in the contract.

6. If the income is obtained by means of product sharing, it shall be recognized according to the date on which the enterprise obtains the product.

The point at which revenue from the sale of goods is recognized.

1.If the goods sold are collected and commended, the revenue is recognized when the procedures for missing the collection are completed.

2.If the goods are sold by payment, the revenue shall be recognized when the invoice is issued and the payment is received.

3.If the goods are sold in advance, the revenue should be recognized at the time of shipment.

4.If the goods are sold by installments, the revenue shall be recognized at one time according to the fair value of the receivables when the conditions for revenue recognition are met.

5.If you sell goods by consignment, you should recognize the revenue when you receive the consignment list.

The calculation of the taxable income of an enterprise is based on the principle of accrual accounting, which belongs to the income and expenses of the current period, regardless of whether the payment is received or paid, and is regarded as the income and expenses of the current period; Income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not regarded as income and expenses for the current period.

There are several types of revenue recognition.

Revenue recognition refers to the time when revenue is recorded, mainly including the recognition of product sales revenue and labor income. In addition, it also includes the income derived from the use of the company's assets by others, such as interest, royalties, and dividends.

Article 33 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax (Cai Fa Zi [1993] No. 038), the time of occurrence of the tax liability for the sale of goods or taxable services stipulated in Article 19 (1) of the Regulations shall be based on the different sales settlement methods, specifically:

1) The sale of goods by direct payment, regardless of whether the goods are issued or not, is the day on which the sales amount is received or the proof of the sales is obtained, and the bill of lading is handed over to the buyer;

2) Selling goods by means of collection and acceptance and entrusting a bank to collect money, for the day on which the goods are issued and the collection formalities are completed;

3) The sale of goods on credit and in installments shall be the day of the payment date agreed in the contract;

4) Sell the goods in the form of advance payment for the goods, which is the day when the goods are issued;

5) entrusting other taxpayers to sell goods on behalf of the consignment unit on the day of receiving the consignment list for the sale of the consignment unit;

6) The day on which the sales of taxable services are collected or the vouchers for the sales are obtained at the same time for the provision of the services;

7) The day on which the goods listed in subparagraphs (3) to (8) of Article 4 of these Detailed Rules are deemed to be sold by the taxpayer shall be the day on which the goods are transferred.

1. Confirm when completing the collection procedures by means of collection and acceptance.

2. Confirm when the goods are issued in the form of advance payment.

3. The goods need to be installed and inspected

1) General: Confirmation when the buyer accepts the product and the installation and inspection is completed.

2) The installation procedure is relatively simple: confirm when the product is shipped.

4. If the consignment is entrusted by paying the handling fee, it will be confirmed when the consignment list is received.

5. If the payment method is adopted in installments including bridges: it shall be confirmed according to the payment date agreed in the contract.

6. If the income is obtained by means of product sharing, it shall be recognized according to the date on which the enterprise obtains the product.

The recognition of the revenue from the sale of goods shall meet the conditions at the same time:

1) The enterprise has transferred the main risks and rewards of the ownership of the goods to the buyer.

2. The enterprise neither retains the right to continue to manage the goods that are usually associated with the ownership of the goods, nor does it exercise control over the goods that have been sold.

3. The amount of income can be reliably measured.

4. The relevant economic benefits are likely to flow into the enterprise.

5. The related costs that have been incurred or will be incurred can be reliably measured.

The timing of revenue recognition is important, whether it's for bookkeeping or filing taxes. What are the tax laws and accounting regulations for revenue recognition? In this issue, Deep Space Network has sorted out the relevant content for you, let's take a look.

When does the tax law say that income is recognized?

In accordance with Article 38 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax.

1) Selling goods by direct payment, regardless of whether the goods are issued or not, is the day on which the sales money is received or the voucher for the sales payment is obtained;

2) Selling goods by means of collection and acceptance and entrusting a bank to collect money, for the day on which the goods are issued and the collection formalities are completed;

3) The sale of goods by way of credit sales and installment payment shall be the day of the date of receipt as agreed in the written contract, and the day on which the goods are dispatched if there is no written contract or the date of receipt is not specified in the written contract;

4) The sale of goods by way of advance receipt of payment is the day on which the goods are issued, but the production and sale of large machinery and equipment, ships, aircraft and other goods with a production period of more than 12 months shall be the day of receipt of advance payment or the date of receipt agreed in the written contract;

5) Entrusting other taxpayers to sell goods on behalf of the consignment unit on the day of receipt of the consignment list of the consignment unit or receipt of all or part of the payment. If the consignment list and payment are not received, it shall be the day on which the consignment goods have been sent for 180 days.

Conditions under which revenue is recognized.

The recognition of income should at least meet the following conditions: first, the economic benefits related to income are likely to flow into the enterprise; Second, the result of the inflow of economic benefits into the enterprise will lead to an increase in the assets of the enterprise or a decrease in the liabilities of the enterprise; Third, the inflow of buried economic benefits can be reliably measured.

The recognition of revenue requires the professional judgment of the accountant. For every income-related transaction or event, it is necessary to identify whether the items corresponding to the income should be formally recorded in accounting, when they should be recorded and included in the statements, and whether the items recorded or included in the statements meet the four basic criteria (definability, measurability, relevance and reliability)? And it should also be considered:

Whether the income and its related costs and expenses are proportional to each other, whether the benefits are greater than the costs, and whether the income items that should be recorded and included in the statement comply with the principle of materiality.