Income Recognition
/ˈɪnkʌm ˌrɛkəgˈnɪʃən/
Definitions
- (n.) The accounting principle that determines the specific conditions under which income is recognized and recorded in financial statements.
The company applied income recognition principles to report revenue accurately at the end of the fiscal year.
- (n.) The legal timing and criteria for declaring revenue in tax law, affecting when income is taxable.
Income recognition rules established when the taxpayer must declare earnings for tax purposes.
Forms
- income recognition
Related terms
See also
Commentary
Income recognition differs between financial accounting and tax law contexts; drafters should specify the applicable regulatory framework to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.