Case study - Revenue recognition

[Moon]

ABC Company is a parent company (Located outside Pakistan) of the XYZ Pakistan. Parent company assigns specific coursework to the branch in Pakistan. Branche through a number of professional staff hired on fixed salary basis carry out the assignment and, subsequent to completion, the product is send to the parent company. The parent company reimburses the monthly expenses of the branch on the basis of a statement prepared and sends to it by the branch. The question is when and how the branch should recognize the revenue from the rendering of services keeping in mind that the branch is not authorized to carry out independent operations.

------------------------
Be careful! Words speak....