6. Sources of income:
Capital or financing transaction that resulted in
the additional funds invested by shareholders
and bondholders.
Profit from sale of assets not in the form of
products such as corporate assets, securities or
sale of branch of the company.
gift, donation or discovery
revaluation of assets
delivery product of the company, which is the
flow of product sales
(The main source of income is the point 5)
7. Formed process and the realization of
income:
1. EARNING PROCESS (process of income
formation)
Revenues are considered to form, together with
all the ongoing operation of the company
(production, sales and collection of accounts
receivable)
2. Realization PROCESS (the revenue)
Revenues are considered to form after the
product is completed and sold directly / on the
basis of the contract of sale.
8. Realization process is characterized by
two events:
Certainty change the product into other
potential services through the sales process
legitimate or something (eg: a contract of
sale)
Endorsement the sales transaction by
obtaining current assets.
9. Revenue Recognition
1. Production progress
2. When the production is finished
3. Sales (the most basic objective / main
standar)
4. When cash receipts
10. APPRECIATION:
the difference between the fair market value
of the assets of the company by book value.
Appreciation is revenue that should be
recognized
Appreciation is not a transaction
Appreciation is not objective, because some
asset appreciation indigo an opinion only.
11. Income Characteristics:
Revenue can be viewed from two aspects
PHYSICAL & MONETARY
Physical aspects: income is the end goal
should be a physical flow in the process of
generating profit
Monetary aspects: income is the inflow of
assets that source of the company's
operation in the sense
