Page 4 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
24. Understanding Income Statements, p.41
LOS 24.b: Describe general principles of revenue recognition and accrual accounting, specific revenue
recognition applications (including accounting for long-term contracts, instalment sales, barter
transactions, gross and net reporting of revenue), and implications of revenue recognition principles
for financial analysis.
LOS 24.c: Calculate revenue given information that might influence the choice of revenue recognition method
Revenue Recognition For Goods, p.42 Revenue Recognition For Services, p.42
1. Risk/Control and Reward transferred.
tanties
2. Revenue/Cost reliably measured. 1. Stage of completion reliably
3. Probable flow of economic benefits. measured.
SEC further guidance, p. 42
