Financial Education | Technical and theoretical characteristics of revenues

The recognition of revenue on this basis will provide useful information about the extent of the service activity and its performance in a given period also requires the recognition of revenue on this basis. The requirements of that Standard are generally applicable to the recognition of revenue and expenses associated with a transaction involving the rendering of services.

Revenue is recognized only when it is probable that the economic benefits arising from the transaction will flow to the entity. However, when uncertainty arises as to the recoverability of a balance already included in revenue, the uncollectible amount or the amount for which collection is no longer probable is recognized as an expense, rather than adjusting the amount of revenue originally recognized.

There is other income arising from certain transactions, such as the following, lease agreements, dividends and other income arising from investments accounted for by the equity method, and changes in the fair value of financial assets and financial liabilities.

Other factors to be taken into account are changes in the fair value of investment properties, initial recognition and changes in the fair value of biological assets related to agricultural activity, and initial recognition of agricultural products.

It should be noted that revenue from ordinary activities is not recognized when goods or services are exchanged for goods or services of a similar nature and value, goods or services are exchanged for goods or services of a different nature, but the transaction is not of a commercial nature.