Difference between revisions of "Unrealised profit"

From ACT Wiki
Jump to: navigation, search
(Add second definition. Source: linked pages.)
(Expand second definition.)
 
Line 6: Line 6:
 
2. ''Company law and financial reporting.''
 
2. ''Company law and financial reporting.''
  
Profit whose realisation in the form of cash, or other assets readily convertible into cash, is not yet sufficiently certain to allow its recognition in financial statements.
+
More broadly, any profit whose realisation in the form of cash, or other assets readily convertible into cash, is not yet sufficiently certain to allow its recognition in financial statements.
  
  

Latest revision as of 11:02, 25 August 2019

1. Group accounting.

From an accounting group’s perspective, profit may be unrealised when goods have not yet been sold external to the group, even if they have been sold from one group company to another.


2. Company law and financial reporting.

More broadly, any profit whose realisation in the form of cash, or other assets readily convertible into cash, is not yet sufficiently certain to allow its recognition in financial statements.


See also