Study of LKAS 18: revenue
The latest paper from the CIMA Sri Lanka accounting standard study group examines LKAS 18: revenue. LKAS 18 applies to the ‘revenue’ type of ‘income’
At the outset, LKAS 18 seems easy to understand and apply. Yet, given the intense competitiveness in the business world, products and services are priced with numerous underlying conditions to stay ahead of competition. Therefore, accounting for revenue is no longer simple and straightforward as it used to be a decade ago.
Many revenue transactions cannot be evaluated at their face value. Knowing when and how to account for revenue is of paramount importance to ensure that the company’s financial statements are aligned to the regulatory framework and the stakeholders get a true, fair and consistent view of the performance of the company.
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