Let’s say that you ship off goods to your client on December 15 and since they are delivered by the ship, the expected date of receive for the client is January 14. It’s a long shipment and as such, one should always keep in mind the shipment terms.

If according to the terms the risks and rewards (i.e. ownership) is transferred in a way that the client has to take care of the transport, the customs etc. the goods belong to the client as soon as they are put on the means of transport. Depending on the terms of delivery the ownership is transferred at the time the client is responsible for them.
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IFRS Income Statement Template is an example income statement prepared under IFRS reporting guidelines and hence it would make sense to discuss more about the revenue recognition policies used under IFRS. As you already may know revenue can basically arise from selling goods or rendering services. Gains (I would not call it “revenue”) can be earned from dividends, interests etc. While the policies surrounding different types of revenues are varying and fairly detailed in IFRS, we’ll bring you the highlights and basic rules.
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