One approach to revenue recognition proposed for self-generating and regenerating assets is to recognise volume changes as revenue or expense but to treat price changes as an adjustment to equity through a reserve.AASB 141 requires that:

Question

Quizplus · Accepted Answer

CAASB 141 requires that the combined gain or loss arising from changes in the volume of self-generating and regenerating assets be included in profit or loss for the period in which it arises, reflecting the performance of the entity during that period. Additionally, it recognizes that the total increase in value due to production should be available for distribution to owners, indicating that such increases are considered revenue for the period.

One Approach to Revenue Recognition Proposed for Self-Generating and Regenerating