The traditional method for recognising revenue made no allowance for possible bad debts. The first (2010) exposure

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The traditional method for recognising revenue made no allowance for possible bad debts. The first (2010) exposure draft reduced the amount of revenue by the estimated amount of bad debts. In the second exposure draft the standard setters reverted to the traditional method of revenue recognition. Given the contribution of possible bad debts to the great financial crisis, was the reversion to the traditional method wise? Discuss.

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Financial Accounting And Reporting

ISBN: 9781292399805

20th Edition

Authors: Barry Elliott, Jamie Elliott

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