The Revenue Recognition Methods Adopted by Advertising Companies in Pasig City
Keywords:revenue recognition method, maximization of profit, minimization of cost, maximization of output/ productivity and tax benefits
The study aimed to assess the efficiency of Revenue Recognition Methods Adopted by Advertising Companies in Pasig City, their levels of agreement on the said areas and through the significant difference of the respondents’ assessment of the efficiency of Revenue Recognition that can pose an implication to the companies’ workflow. The researcher used four (4) factors to assess the level of efficiency of the Revenue Recognition, namely, maximization of profit, minimization of time/cost, maximization of output/productivity and tax benefit. This study made use of the descriptive research method with the survey questionnaire as its instrument. The researcher distributed 140 questionnaires and was able to retrieve 123 back enough to satisfy the sample size, during the two (2) weeks of data gathering. Majority (67%) of the respondents are corporations and have capitalization of a medium-sized enterprise (38%), most (40%) of companies employ 301 and more employees in their companies which has 37% works for 1 to 5 years and majority (59%) used cash basis for the revenue recognition method. Majority (86%) of the respondents obtained college degree as their highest educational attainment and (51%) are in supervisory positions, working for 1 to 5 years (52%) in the company. Majority of the respondents (59%) failed to attend any seminar or training in the past three years. The study aims to provide an understanding of revenue recognition and its use for advertising companies in Pasig City.