When would you recognize revenue regarding the following Leon's Furniture sells you a home theatre in January on a no money down no interest and no payments for one year promotional deal?
According to IAS-16 of IFRS(International Financial Reporting Standards) that home theatre sale would be recorded as revenue just at time of transfer of title(ownership) to the buyer,because buyer would be than considered as a debtor to the seller,as money has to be paid rathar at the time of sale or after one year of it. Since sale is recorded and debtor is recognized thus revenue is recorded.
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