When does the gold mining company recognise its revenue?

Asked by Topperlearning User | 9th Jun, 2016, 12:29: PM

Expert Answer:

Revenue is considered to have been realised when a transaction has been entered into and the obligation to receive the amount has been established. 

 The business deals with standard products which are sold in a structured market at a price and can be determined at any particular point of time i.e. gold mining revenue is recognised in the accounting period during which the gold is mined. Hence, the gold mining company recognises its revenue on completion of production.

Answered by  | 9th Jun, 2016, 02:29: PM