Revenue (also found as turnover and sales ) - the total amount of claims (including unpaid) made by the enterprise or entrepreneur to customers as a result of the sale of products, services, works [1] for a certain period. Revenues are a type of company revenue.
Content
Definition
According to paragraph 5 of PBU 9/99, revenue - income from ordinary activities is revenue from the sale of products and goods, receipts related to the performance of work, provision. Revenues are accepted for accounting in the amount calculated in monetary terms equal to the amount of receipt of cash and other property and (or) the value of receivables of services. According to IFRS 15, revenue is income arising in the ordinary course of business of a company that is recognized when the company fulfills a performance obligation during the period by transferring the promised asset to the buyer [2] .
Gross profit equals the difference between revenue and expenses ( costs ) for the main activity (cost of goods or services sold). The capital gain as a result of an increase in the value of the assets of an enterprise for some reason is not revenue. For charities, revenue includes the total value of cash gifts received.
Proceeds from the sale of products (works, services) include cash or other property in monetary terms received or due to be received as a result of the sale of goods, finished products, works, services at prices and tariffs in accordance with agreements. [3] Net revenue, in contrast to gross revenue, is reduced by taxes.
At the same time, the activities of the enterprise can be characterized in several areas:
- revenue from core activities coming from the sale of products (work performed, services rendered);
- revenue from investment activities, expressed as a financial result from the sale of non-current assets , sale of securities ;
- revenue from financial activities.
Total revenue consists of revenue in these three areas.
Counting Features
In accounting, two main methods of calculating revenue are used:
- Cash method - the proceeds are the money received on the accounts or cash desk of the enterprise or goods ( barter ) received in payment of obligations.
- Accrual method - revenue is accrued when consumers have obligations to pay for the products or services of the enterprise. Most often, accrual occurs at the time of shipment to the consumer of products or the provision of services.
See also
- Net profit
- Operating profit
- Earnings per share
Notes
- ↑ G.I. Efimov, V.G. Krutsko, K.G. Nakhapetyan, V.A. Perekhodchenko. Fundamentals of management in modern conditions. - Moscow: Sputnik +, 2016 .-- S. 25. - 374 p. - ISBN 978-5-9973-3668-4 .
- ↑ PWC . Textbook ACCA DipIFR . - 2018 .-- S. 94-148.
- ↑ Enterprise finance: textbook / N. E. Zayats [et al.]; under the general. ed. N.E. Zayats, T.I. Vasilevskaya. - 3rd ed., Rev. - Minsk: Ab. School., 2006 .-- 528 p.