In our company some customers pay us on a 30 day period from the date of invoice. Our period end for P2 is Sunday 24th Feb. Customers have provided us with remmittance slips dated 24 Feb however the cash will not clear the bank until Monday 25th. Our current process has been to recognise this cash in P3 when it clears the bank. However, my question is can we recognise this cash in P2 when we receive the remmittance and to show as cash in transit or uncleared funds. What dies the standards say and what standard should I refer to, IAS 18 revenue recognition ?
Appreciate any feedback.