Revenue is the income a company recognizes from selling goods or providing services in the course of its activities. It measures the scale of the business before the relevant expenses are deducted. The timing of recognition is connected with fulfilling obligations to customers, so cash receipts and the appearance of revenue may occur in different periods.
Example
If a workshop sells 200 items at 300 roubles each, its revenue before additional adjustments is 60,000 roubles. However, some customers may pay later. Revenue has then already been recognized even though the account does not yet contain the full amount: trade receivables arise.
What revenue does not mean
Revenue is not net profit or the owners’ freely available cash. Materials, wages and other expenses must be covered from it. When comparing companies, check whether sales are shown before or after particular deductions, how returns are treated, and whether the company acts as a seller or an intermediary.
General financial concepts; not an individual recommendation under Russian jurisdiction.
Source references retained: term-revenue, report-ifrs15. Related links retained: /guides/revenue-recognition/, /guides/income-statement/, /glossary/debitorskaya-zadolzhennost/. The 200 items at 300 roubles, 60,000-rouble example, later payment, receivables, expenses, returns, deductions, seller/intermediary distinction and recognition-versus-cash caveats are preserved.
Educational material is not individual investment, legal or tax advice.
