Recognition of Revenue
/rɛkəɡˈnɪʃən əv ˈrɛvəˌnuː/
Definitions
- (n.) The process of formally acknowledging and recording revenue in the financial statements according to applicable accounting and legal standards.
The company’s recognition of revenue must comply with Generally Accepted Accounting Principles to avoid legal disputes.
Forms
- recognition of revenue
Related terms
See also
Commentary
Recognition of revenue is a critical concept linking legal obligations in contracts and financial accounting rules; precise timing and criteria affect both legal compliance and financial transparency.
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.