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Issued March 2005. Effective accounting periods ending on or after 22 June 2005.
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Synopsis
The consensus applies to all contracts for services:
- Where there are distinguishable phases of a single contract it may be appropriate to account for the contract as two or more separate transactions.
- Contracts for services should be accounted for as long-term contracts, where contract activity falls into different accounting periods, unless they involve the provision of a single service.
- Where the substance of the contract is that it is performed gradually over time revenue should be recognised as contract activity progresses.
- Where the substance of the contract is that the right to consideration does not arise until the occurrence of a critical event revenue is not recognised until that event occurs.
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This page was last updated 14 May 2012