FRS 5: recognising revenue
Q. As a broker who provides a claims service, what should I be doing as a result of FRS 5?
You are referring here to the new amendment, Application Note G, to FRS 5 which became applicable to accounting periods ending on or after 23 December 2003.
The main principle behind it is that an intermediary should recognise revenue when the right to the consideration arises. Where that right is achieved prior to the performance of the obligations, revenue should be recognised to the extent the obligations are fulfilled. Therefore, if the obligations include claims handling, revenue should
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