Service Revenue

Code: 4120
👁 Views: 185

Account Information

Financial Statement Income Statement
Normal Balance Credit

Definition

Revenue from services

Sub-accounts

4121

Consulting Revenue

4122

Maintenance Revenue

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 15 Revenue from Contracts with Customers
US GAAP ASC 606 Revenue from Contracts with Customers

❓ Frequently Asked Questions

Q: When is service revenue recognized?

A: Service revenue is typically recognized over time under IFRS 15 because the customer receives and consumes the benefit of the service at the same time as the company provides it. It can be recognized using the percentage of completion method (e.g., based on labor hours or percentage of cost incurred).

Q: What is the difference between service revenue and construction contract revenue?

A: Service revenue relates to non-construction services such as consulting, maintenance, or education. Construction contract revenue relates to construction, building, and engineering contracts, which are typically longer in duration and more complex, and are also recognized under IFRS 15 but with additional disclosure requirements.