Buy custom OSIM's 2006 Financial report
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| Topic: |
Business
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| Number of pages / Number of words: |
21 / 5841 |
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Revenue is generally earned when a legally enforceable exchange takes place (e.g., consideration has been tendered and the buyer takes possession of the product or benefits from the performance of a service).
For different kind of revenue, OSIM recognize it differently;(Note 2, page 103)
For sales revenues, they are recognized net of goods and services tax and discounts when goods have been delivered and accepted by the customer...
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Their method are quite conservative and conservatism is a good thing in the accounting industry as it prevents over estimating figures.
In respect, the method adpoted by OSIM is appropriate as it fulfills the financial accounting standards set by GAAP ? Singapore. Meaning, it fulfils the accrual principle ? record a business activity as soon as it affects the financial position of the entity, regardless of whether it affects cash and this is what OSIM did...
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