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hello and welcome to the session in which we would look at revenue recognition what is revenue recognition revenue recognition is when do we recognize revenue when do we record revenue revenue is one of the most important figures for companies revenue drives everything else on the financial statements its called the top line for a reason it is the top line and its the most important it drives your earnings before interest and taxes it drives your earnings per share which in turn will drive your stock price a company cannot exist without revenue or they might be able to exist for a short period of time very short period of time if the investors kept investing money but without revenue you cant have a profit without revenues you should not be incurring any expenses so revenue is important and in the real world revenue is subject to fraud so thats why revenue recognition is important gaap had numerous standards in the past and this is im going to give you a little bit of background
