Revenue from the use by others of enterprise assets yielding interest, royalties and dividends should be recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of revenue can be measured reliably.
Revenue should be recognized on the following basis:
- Interest should be recognized using the ……….Effective interest,Straight-line………method that allocates the interest over the relevant period.
- Royalties should be recognized on an accrual basis…….Independently from, In accordance with………. The substance of the relevant agreement.
- Dividends should be recognized when the shareholder’s right to receive payment is….. Established, expected.