REVENUE RECOGNITION


1 Answer(s)


In a large number of business ventures, the probability of achieving profits from yr 1 of operations is variably low. Investments in ventures are made with the long term in view where-by-then operations should have/will gear up to forecasted projections and in time profits should begin to accrue.Investments made could be strategic in nature, could be a do or die decision/situation,could be capital investment frontloaded, could be in a highly competitive sector /country market where competitive forces are intense etc