Accounting Magazine
Accounting February 2009
- Revenue Recognition and the Recognition of Liabilities
Toshifumi Matsumoto /Professor of Doshisha University
Summary
FASB and IASB has been jointly pursued the revenue recognition project. Its object is said to develop a solid, not flexible revenue recognition criterion in accordance with the assets and liabilities view. This paper examines the effectiveness of this approach in three aspects, namely, definition of revenue, signs of its recognition and measurement methods. Then it points out a logical inconsistency contained in the dimension of revenue measurement.