10 An exchange revenue transaction for WHO is defined as one where WHO receives resources, assets or services, or has liabilities extinguished and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.
20 Revenue from rendering of services is recognized when all the following conditions are met:
- The amount of revenue can be measured reliably
- It is probable that the economic benefits or service potential associated with the transaction will flow to WHO
- The stage of completion of the transaction at the reporting date can be measured reliably; and
- The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
For WHO, examples include rental income from the usage of WHO's fixed assets and property.
30 Revenue from the sale of goods is recognized when all the following conditions are met:
- The risks and rewards of ownership of the goods are passed from WHO to the buyer (i.e. the buyer has accepted the goods and legal title has passed);
- WHO retains neither managerial involvement associated with ownership nor effective control over the goods sold;
- When the related revenue and costs incurred can be measured reliably; and
- It is probable that the economic benefits or service potential associated with the transaction will flow to WHO.
For WHO, examples include reimbursable procurement, concessions, and the sale of publications, souvenirs and books.
40 Revenue from other sources:
- Interest income is recognized as it accrues, based on the effective yield method.
- Royalty income is recognized as revenue as it accrues under the terms of the relevant agreement.
- Dividends are recognized when declared by the investee.
- Revenue from operating leases is recognized according to the terms of the relevant lease agreement or, if no basis is specified, on a straight line basis over the lease term.
50 Revenue from exchange transactions is recognized in the period to which it relates, to the extent that the amount can be reliably measured and recovery is probable.
60 Revenue is measured at the fair value of the consideration received or receivable.
70 Where the consideration received is in cash or a cash equivalent, revenue is recognized at the amount of the consideration received.
