So, isn’t revenue recognized (in income statement) only when the milestone is met (invoice raised in good faith) ? Of course there may be payment terms like 60 days, 90 days etc., for customer to pay from when the invoice is raised. This way, the recognized revenue from income statement stays as receivables in the balance sheet for those number of days and/or longer if customer hasn’t paid because of a delay/disagreement.
Why should a revenue be realized in income statement (which boosts up income/EPS etc.,) while the balance sheet paints a completely different picture ?
While we all like low receivables, a huge “unbilled revenue” category makes it look uneasy. Let me look at the past years if such a huge 50% is normal for IDA.
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