GAAP is the realization principle. Revenue is to be realized when it is earned and when reasonable certainty as to the collectability of payment from the customer exists.
Revenue recognized at delivery or date of sale occurs when the realization principle is met, meaning the goods or services have been delivered or provided to the customer and either cash is received or an account receivable with reasonable assurance of collectability is recorded.
Revenue recognized at delivery or date of sale occurs when the realization principle is met meaning that the goods or services have been delivered or provided to the customer and either cash is received or an account receivable with reasonable assurance of collectability is recorded.
This paper argues against the realization principle
, which reifies the realization relation between lower-level and higher-level properties.
These disparate influences are resolved in the current income tax through the "realization principle," which holds that changes in wealth are (mostly) taken into account only when "realized." (24) However, there is no universally-applicable definition or concept of realization.
The realization principle is usually said to arise out of the practical consideration that the annual changes in the fair market value of wealth that would be reckoned under an ideal Simons income tax are often difficult or impossible to ascertain.
There the issue is whether a present economic loss is deemed to satisfy the realization principle in spite of the general realization rule that changes in wealth with respect to existing assets are not to be reckoned until disposition.
The adoption of the realization principle, as the main tool to deal with accounting income recognition (i.e., income may be booked only when it is realized), was strongly influenced by income tax legislation and court decisions (e.g., the Supreme Court's 1920 Eisner v.
The realization principle also received wide acceptance by accountants.
Justice Iacobucci, the inventory valuation method of lower of cost and market was an exception to the realization principle
which applied only to stock-in-traders engaged in carrying on business.
APPLYING HEALTH REALIZATION PRINCIPLES
TO POSITIVE PSYCHOLOGY