Module I· Revenue Recognition (IFRS 15)Intermediate
Question
What is the difference between point-in-time and over-time revenue recognition?
Answer
Point-in-time revenue is recognized when control transfers at one moment. Over-time revenue is recognized as the performance obligation is satisfied over the contract life.
Deep diveShow more details
Over-time accounting can smooth reported revenue. In DD, check contract terms, acceptance clauses, right to payment, and whether management uses aggressive percentage-of-completion assumptions.