One question is about IAS 18. I have some material about IAS 18 that I copied from a website.

We heard some years a go about great dispute between Price Waterhouse Coopers and a big listed entity whose main business activity was selling calling cards. PWC (World’s no.1 Audit Company) being the auditors of the company did not agree with the revenue recognition policy of the listed entity. As you know calling cards are not used for a long period after they are sold by the company. There was a question whether the revenue should be recognized at the time of sale of cards or at the time when they are utilized. At the end PWC was the winner of the dispute and that listed entity had to change its revenue recognition policy. Due to that dispute its share price came down from 65CU to 2CU.

From this scenario you can understand the importance of revenue recognition policy. IAS 18 deals with rules regarding revenue recognition. It’s damn important for every auditor to remain up to date with the alterations of IAS 18 and have a complete grip on the matters specified in it. It is also important for auditors to grasp all the knowledge of IAS 18. A summary of IAS 18 is available for your review. This summary contains all the concepts of IAS 18 with necessary explanations in a very concise way. It is also important for students for revision purpose and for those professionals who does not get time to upgrade their knowledge. You can read it on the following link.

IAS 18 (Revenue) | IAS – Plus