Realisation: Difference between revisions

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imported>Doug Williamson
(Link with Accruals basis page.)
imported>Doug Williamson
(Simplify, update and link with Recognition page.)
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1. ''Financial reporting''.
'Realisation' refers to the conversion of assets, profits or losses into cash.


The realisation concept in financial reporting requires that certain key events should have taken place before income and expenditure are recognised in the financial statements at the reporting date.
Realisation can occur either on the receipt or payment of cash, or at an earlier time when such receipt or payment of cash becomes reasonably certain.
 
Cash does not necessarily have to have been received or paid by the reporting date, but risks and rewards of ownership have to have been transferred.
 
 
2. In other contexts, 'realisation' generally refers to the conversion of assets, profits or losses into cash.




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*[[Unrealised profit]]
*[[Unrealised profit]]
*[[Accruals basis]]
*[[Accruals basis]]
*[[Recognition]]

Revision as of 14:58, 4 August 2015

'Realisation' refers to the conversion of assets, profits or losses into cash.

Realisation can occur either on the receipt or payment of cash, or at an earlier time when such receipt or payment of cash becomes reasonably certain.


See also

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