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Consider the following scenarios:
a) Audit fees received by an auditing firm.
b) Final ordinary dividend received. Dividends are declared on 31 December and are payable to shareholders registered on that date. Payment is made three weeks after date of declaration.
c) Trade discounts granted to customers
d) Royalties amounting to R100 000 are receivable from a foreign country. The payment of other royalties is expected to be delayed.
e) A vehicle sold in terms of an installment sales agreement.
f) Subscription fees received in respect of a magazine published monthly. The magazine sell for R10 a copy.
REQUIRED
State with reasons when each of the above scenarios (A-F) will be recognized as revenue (timing of recognition).
Your response must comply with the requirements of international financial reporting standards.
31 VAT WAS FIRST INTRODUCED AS A TAX IN WHICH YEAR AND IN WHICH COUNTRY?
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