Revenue Recognition (ASC 606 / IFRS 15)

How to Record Custom Taxonomy Development Revenue

Accounting for professional services involving the creation of structured data classifications for customer databases.

Account NameTypeDebit ($)Credit ($)
Accounts ReceivableAsset12,000.00-
Deferred RevenueLiability-12,000.00
Deferred RevenueLiability12,000.00-
Service RevenueRevenue-12,000.00

💡 Accountant's Note

Revenue is initially deferred upon billing and recognized as the taxonomy development project reaches final delivery and customer acceptance, satisfying the performance obligation.

Practitioner & Systems Framework

💻 ERP Architecture

Revenue recognition should be triggered by the 'Project Completed' status in the PSA module.

⚠️ Audit Flags

Project completion sign-offs dated after the fiscal period end.

📄 Required Documentation

Executed SOW, final taxonomy delivery confirmation, and customer acceptance certificate.

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QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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