(Corporate Accounting Principles
2,3B,Note 6)
There is no specific definition of
realisation nor are there standard
requirements for revenue
recognition. In general, realisation
refers to economic transactions
conducted with third parties, in other words when the goods or services are
converted to a form of monetary asset. The realisation principle is
applied as guidance for the
recognition of sales. However, in
practice, a delivery basis and a
shipping basis for revenue
recognition are also applied, and so
the timing of recognition depends on established commercial practice