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Realization Principle

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Realization Principle
In accounting, a principle stating that a company can realize revenue only when it earns revenue.

realization principle
An accounting standard that recognizes revenue only when it is earned. Generally, realization occurs when goods are sold or a service is rendered.


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at 262 ("The realization principle operates to defer the tax reckoning of an increase or decrease in wealth.
The reason lies with the realization principle that underpins capital gains taxes.
 
 
 
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