If the first sale was mid October than the reported revenues figure is for sales made since, ie for 5 1/2 months.
Terms of trade don't come into it ....a sale is a sale whether paid or not
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hi copper, i,m one of those that sit back and read and do,nt post too much...( and when i do it sounds crap) but not all of us understand candle charts and 90 day moving average and 50 % of gobbly gook equals 10% on the bottom line... so please keep posting and informing us pleps and remember if your dunny blocks i,m your man...go the snapster your ok
oh i forgot:t_up:....just learnt that
I presume that little organisations in NZ (say, a self-employed carpenter, for instance) are still able to fill in their accounts for tax purposes on the basis of monies actually received (but I do not actually know this for certain).
However big companies work to different accounting standards and revenue recognition is often at invoice (or other circumstances).
For PEB a paying test done almost certainly equals revenue recognized as a trade receivable until it becomes a deposit in the bank.
Best Wishes
Paper Tiger
All business's in N.Z. must complete financial statements on an accrual basis. e.g. you complete a job on 31 March 2014 and invoice it on that date. Its accounted for as income for the Y/E 31 March 2014 and is a trade receiveable as at that date, unless of course a minor miracle happens and you get paid immediatly on completion :)
In NZ, for GST purposes (I assume Income tax and accounts can follow), you can use cash basis if turn over is under $2m. Above that it is invoice basis and NZGAAP is probably full accrual basis which means you also have to recognize unbilled revenue (I think most companies get around this by issuing invoices dated the last day of the month).