This 10th and final segment reviews the entries for our CCC example assuming that the company had to recognize revenue are completion or delivery instead of using one of the early recognition methods. We use this method only if we can’t come up with good estimates, aren’t sure we will cover our costs, or if we don’t meet any of FASB’s three possibilities for showing revenue before completion. After finishing the example, we briefly discuss the differences between U.S. GAAP and IFRS for revenue recognition.
This 10th and final segment reviews the entries for our CCC example assuming that the company had to recognize revenue are completion or delivery instead of using one of the early recognition methods. We use this method only if we can’t come up with good estimates, aren’t sure we will cover our costs, or if we don’t meet any of FASB’s three possibilities for showing revenue before completion. After finishing the example, we briefly discuss the differences between U.S. GAAP and IFRS for revenue recognition.
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