Revenue Recognition

Dear All

Could anyone advise me whether I should count for revenue for future customer contracts signed in the current year as the current year sales on the Income Statement?

The contracts are dated in this year and have detailed out how many years in the future customer is serviced under this contract. There are also agreed charges for the future years in this contracts.

According to IAS 18 it says below

·   the amount of revenue can be measured reliably;

·   it is probable that the economic benefits will flow to the seller;

·   the stage of completion at the balance sheet date can be measured reliably; and

·   the costs incurred, or to be incurred, in respect of the transaction can be measured reliably

Am I right in thinking the stage of completion at this year end is not served so I shouldn’t account for the revenue for future contracts? Or shall I treat it as a deferred income?

Please help!!

Thanks ever so much

Best regards

Ni