[Question] Beginner question: How do you recognise project related revenue in your books

[MacGee]

We currently have a Pty, that delivers IT and eLearning related projects to clients. Revenue can be once off (50% deposit, 50% on completion of the project), or recurring for the duration of the project (usually paid in monthly instalments). Some of the work is done by our company, some of it is outsourced/sub contracted.

From an accounting point of view, I see our accounting system caters for "Fee/Consulting Income" as well as "Project/Event/Campaign Income".

Any of the accountants here wish to comment which they think would be the better way of the two to recognise revenue against? Fee or Project?

[CLIVE-TRIANGLE]

The choice is largely irrelevant, because naming convention is of little consequence.

More important in your scenario is when do you recognize receipts as revenue? You are most likely required to comply with IFRS, so I suggest give it a read. The particular statement is IFRS 15. It is compulsory from January 2017, but early implementation is permitted.

An explanation of the standard and it's various elements can be found here http://www.iasplus.com/en/standards/ifrs/ifrs15