Financial Reporting [BA1033]
Revenue Recognition
Income is recognised in the income statement when there is an increase in future economic
benefits related to an increase in asset or a decrease of a liability has risen that can be measured
reliably. For examples, the net increase in assets arising on sale of goods or services or the
decrease in liability arising from the waiver of a debt payable.
Based on the income statement of Nestle Company, the revenue on 2017 is RM5, 260million
compare on 2018 is RM5, 519million which has a different amount of RM259million. Besides,
the gross profit of Nestle Company shown that in year 2018 they had gain a value of
RM186million. (Nestle, 2018)
Based on the statement of cash flows, Nestle Company has gain on disposal of leasehold land
as an amount of RM7, 410million. This arise on the disposal of non-currents assets. The
