The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events. Show
Key definitionRevenue: the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an entity (such as sales of goods, sales of services, interest, royalties, and dividends). [IAS 18.7] Measurement of revenueRevenue should be measured at the fair value of the consideration received or receivable. [IAS 18.9] An exchange for goods or services of a similar nature and value is not regarded as a transaction that generates revenue. However, exchanges for dissimilar items are regarded as generating revenue. [IAS 18.12] If the inflow of cash or cash equivalents is deferred, the fair value of the consideration receivable is less than the nominal amount of cash and cash equivalents to be received, and discounting is appropriate. This would occur, for instance, if the seller is providing interest-free credit to the buyer or is charging a below-market rate of interest. Interest must be imputed based on market rates. [IAS 18.11] Recognition of revenueRecognition, as defined in the IASB Framework, means incorporating an item that meets the definition of revenue (above) in the income statement when it meets the following criteria:
IAS 18 provides guidance for recognising the following specific categories of revenue: Sale of goods Revenue arising from the sale of goods should be recognised when all of the following criteria have been satisfied: [IAS 18.14]
Rendering of services For revenue arising from the rendering of services, provided that all of the following criteria are met, revenue should be recognised by reference to the stage of completion of the transaction at the balance sheet date (the percentage-of-completion method): [IAS 18.20]
When the above criteria are not met, revenue arising from the rendering of services should be recognised only to the extent of the expenses recognised that are recoverable (a "cost-recovery approach". [IAS 18.26] Interest, royalties, and dividends For interest, royalties and dividends, provided that it is probable that the economic benefits will flow to the enterprise and the amount of revenue can be measured reliably, revenue should be recognised as follows: [IAS 18.29-30]
Disclosure [IAS 18.35]
Implementation guidanceAppendix A to IAS 18 provides illustrative examples of how the above principles apply to certain transactions. For Travel Reimbursements, Entertainment Reimbursements, Moving & Relocation, & Disbursement VouchersWhether you are submitting an entertainment reimbursement (ENT), travel reimbursement (TR), or disbursement voucher (DV), you will need to send your supporting documentation to be scanned. The guide below will help you determine what receipts, invoices, or proofs of payment you need to submit to be reimbursed in a timely manner. Reimbursements will not normally be allowed for purchases made by gift card, reward points, prepaid vendor-specific cards (copy card, phone cards, etc.), gift certificates, etc. If proof of payment of the non-cash method can be provided, such as the receipt for a gift card purchase that can be included in the request to supplement the other receipts. Reimbursements will not be made for travel reserved using points earned under airline, hotel or car rental loyalty programs, or a transportation/hospitality company credit. Related Guides:Common Types of Supporting DocumentationThe most common types of supporting documents are receipts, invoices, and proofs of payment. Here's the information that should be included on each: Itemized Receipt Invoice Proof of Payment An original document from the merchant showing:
An original document from the merchant showing:
Often needed in tandem with an invoice. The following are acceptable proofs of payment:
Determining if Supporting Documents Need to be ScannedThe table below lists common types of electronic financial documents (eDocs) that can be created in the Kuali Financial System and Type of KFS eDoc How to Handle Supporting Documents Disbursement Vouchers (DV) Supporting Documents must be submitted with DV. Select one of the three options in the e-document's Image Scanning tab to attach your supporting documentation. See instructions in next section for details. Travel Reimbursements (TR) and Entertainment Reimbursements (ENT) Supporting Documents must be submitted with TR or ENT. Select one of the three options in the e-document's Image Scanning tab to attach your supporting documentation. See instructions in next section for details. Purchase Requisition (REQS) Supporting documents should be electronically attached as a PDF (5 MB max) in the notes and attachments section of the requisition. Do not send documents to scanning. Purchase Order (PO) Supporting documents should be electronically attached as a PDF (5 MB max) in the notes and attachments section of the requisition. Do not send documents to scanning. PALCard Document (PCDO) Keep supporting documents in your department. Do not send to scanning. Uploading Supporting Documents with the Image Scanning TabThe Image Scanning tab in DV, PREQ, and TEM documents includes three sub-tabs for handling supporting documents. You can use one or any combination of these options: You can use this option to directly upload images of your supporting documents to FileNet. This is the fastest and most reliable way to attach supporting documents to your reimbursement. Here are some tips:
If your supporting documents were scanned into a TEM or DV e-document that was subsequently disapproved, link that disapproved eDoc to the new one. Enter the document number of the disapproved document into the field in this section. Note: You cannot link DVs to TEM e-documents and vice versa. Linked e-documents must be from the same module. Viewing Supporting DocumentsAfter images are in FileNet, check them for quality and clarity. Images are accessible in FileNet as soon as they are uploaded. Image files appear as a single image page. If you have difficulty scanning or photographing your documents into a digital format, you should contact the OIT Help Desk or seek technical help from your unit. If you encounter an error while uploading the file, contact the KFS Help Desk and include a screenshot of the error message. Documents that are in the Awaiting Scanning route log node and have images uploaded will advance in workflow only at preset batch processing times (afternoon and overnight). Retention of Documents Uploaded to FileNetReceipts and other supporting documents uploaded to FileNet are considered original documents and will be retained in compliance with UCOP Document Retention Policies. According to UC policy, each department is the office of record for its supporting documents. It is therefore the responsibility of the department to determine whether storage of original documents on FileNet is sufficient to ensure compliance or if paper records should also be retained locally. At minimum, the Accounting Department recommends retaining supporting documents until the KFS document is final, has hit the ledger, is paid out, and has been reconciled. See the Document Retention for Accounting Guide for more information. Required Supporting Documents by Expense TypeFor each of the types of expense listed in the table below, you will need to send the indicated support documents to Document Services to be scanned or upload items to the Image Scanning tab. These documents are needed for Accounts Payable staff to insure compliance with university policies and for various auditors to conduct their audits. If you don't have a required document, you will need to get exceptional approval. Also, keep in mind that your department may have more stringent receipt requirements than those shown in the following table. Travel and Event ManagementExpense Type KFS eDoc Type Required Supporting Documentation Other Considerations Travel Expenses Travel Reimbursement (TR) Itemized receipts with proof of payment are required for the following:
Business Meetings or Entertainment Entertainment Reimbursement (ENT)
Moving, Relocation and House Hunting Moving & Relocation
Disbursement VouchersExpense Type KFS eDoc Type Required Supporting Documentation Other Considerations Honoraria Disbursement Voucher (DV) with reason code E
Membership, Subscriptions, and Dues Disbursement Voucher (DV) with reason code I
Gifts and Non-Cash Awards Disbursement Voucher (DV) with reason code U
Payment to Research Participants Disbursement Voucher (DV) with reason code C
Registration Fees (Not Travel Related) Disbursement Voucher (DV) with reason code L
Supplies and Materials (No Food or Travel) Disbursement Voucher (DV) with reason code B NOTE: PALCard or Purchase Order (PO) are the preferred methods of payment
Fees and Employee Tuition Disbursement Voucher (DV) with reason code P Program Sponsorships Disbursement Voucher (DV) with reason code Q
Have more questions about supporting documentation?For assistance with any of the above information, please contact Accounts Payable at [email protected]. What is the financial process used by healthcare systems to track the revenue from patients?Healthcare revenue cycle management (RCM) is the process by which health systems bill for services and generate revenue - from a patient's first appointment all the way through to the payor's acceptance of final payment.
Which is the process of collecting appropriate reimbursement for services rendered?ACCOUNTS RECEIVABLE MANAGEMENT
assists providers in the collection of appropriate reimbursement for services rendered, and include the following: Insurance verification and eligibility.
Which is a computerized permanent record of all financial transactions between the patient and the practice?Processing an Insurance Claim. What is RCM in healthcare?Healthcare revenue cycle management is the financial process facilities use to manage the administrative and clinical functions associated with claims processing, payment, and revenue generation.
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