17) Substantives: Revenue, TR Flashcards
which source documents are relevant for revenue?
- sales contracts
- delivery notes
- sales journal
- price list
what do we look for in the source documents for revenue?
- dates
- names
- prices
- quantities
what do we aim for for the accounting treatment of revenue?
recognized when the performance obligation is satisfied
which accounting factors do we look at for trade receivables?
NOT initial measurement / recognition
subsequent measurement / derecognition
what are the risks for existence of TR?
fictitious debtors are recognized
what are the risks for rights for TR?
debtors may have been ceded / pledged and the entity no longer controls the right to the TR
what are the risks for classification of TR?
incorrectly classified as TR when there is actually a negative balance for a debtor and we owe them money
which documents do we use for TR?
- debtors listing
- bank statements (for future pmts)
- TR ledger account
- sales journal
- age analysis
- board meeting minutes
what may indicate that TR are impaired?
- overdue accounts / exceeding payment terms
- long outstanding debtors
- lawyers / collection agencies
