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Revenue is typically recognized when products are delivered, or service is performed. Can revenue be recognized...

Revenue is typically recognized when products are delivered, or service is performed. Can revenue be recognized before of after products are delivered? If yes, can you provide any examples? According to revenue recognized principal revenue cannot be recognized unless the service is provided before the product is delivered.
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Answer #1

Yes, Revenue can be recognised before the product is delivered in case where the delivery is delayed at buyer's request and buyer takes title and accepts billing. In such case, Revenue should be recognised immediately but goods must be in hand of seller, identified and ready for delivery at the time of recognition of revenue.

In certain cases revenue recognition of products sold is subject to conditions such as:

1. Installation and Inspection-

Revenue should be recognised when

- Goods are installed at the buyers place to his satisfaction.

- Goods are inspected and accepted by the buyer.

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