revenue recognition
[ˈrɛvənuː ˌrɛkəgˈnɪʃən]
nounpl: revenue recognitions
reconhecimento de receita
1. The accounting principle that determines when and how revenue from the sale of goods or services should be recorded in financial statements, typically when earned rather than when payment is received
Under the new ASC 606 standard, revenue recognition requires companies to identify performance obligations and measure revenue based on the consideration expected in exchange for transferring promised goods or services.
De acordo com a norma ASC 606, o reconhecimento de receita exige que as empresas identifiquem as obrigações de desempenho e mensurem a receita com base na contrapartida esperada pela transferência de bens ou serviços prometidos.
2. The process of determining the appropriate timing and amount of revenue to be reported in a company's financial statements
Improper revenue recognition can lead to financial statement misstatements and regulatory violations.
O reconhecimento inadequado de receita pode resultar em distorções nas demonstrações financeiras e violações regulatórias.
Revenue recognition is a critical accounting principle that differs significantly between US GAAP (ASC 606) and IFRS (IFRS 15), though both have converged toward similar standards. In Brazil, companies must comply with CPC (Comitê de Pronunciamentos Contábeis) standards, which align with IFRS. This concept is essential for financial audits, investor reporting, and regulatory compliance across all major economies, making it a fundamental topic in international accounting practice.
Related Idioms & Phrases
recognize revenue when earned
revenue recognition policy
revenue recognition treatment
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