Nov 2 2015, 11:47 AM
QUOTE(Pink Spider @ Jun 1 2015, 12:45 PM)
Revenue is recognised based on percentage of completion
Percentage of completion is usually based on budgeted cost
Say, sales value is RM150m, and budgeted cost is RM100m
And u already spent RM10m
So, u can recognise revenue of 10% i.e. RM15m
But, u have only billed your customer RM10m
RM5m is accrued billing
Pink Spider, thanks for the excellent explanation. What about unbilled sales? What's the difference between unbilled sales and accrued billing? Thanks!Percentage of completion is usually based on budgeted cost
Say, sales value is RM150m, and budgeted cost is RM100m
And u already spent RM10m
So, u can recognise revenue of 10% i.e. RM15m
But, u have only billed your customer RM10m
RM5m is accrued billing
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