Income Recognition?

Client (company requiring audit) has sold 33 acres of land for housing development.

The deal is the company s getting £2m upfront, plus up to a maximum of additional £6m over and above this depending on house sales over the next 10 years.

What is the feeling on income recognition?

I have my own thoughts but would appreciate comments.

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Chris Smail |
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blok |
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My thru'penny

Steve Kesby |
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blok |
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