Page 5 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
24. Understanding Income Statements
Specific Revenue Recognition Applications (Under US GAAP (FASB) and under IFRS (IASB), p.43
tanties
$500= $400/$800*$1000
20X6: $375 (=$300/$800) * $1000
Completed contract method:
No R/E/Profit except at end of 20X7,
R = $1,000,
E = $800, and
Net income = $200.
