What is the criteria of recognizing revenue according to IAS 18 standard?

Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

• • (a)  the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;
  • (b)  the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
  • (c)  the amount of revenue can be measured reliably;
  • (d)  it is probable that the economic benefits associated with the transaction will flow to the entity; and
  • (e)  the costs incurred or to be incurred in respect of the transaction can be measured reliably.

• • • The assessment of when an entity has transferred the significant risks and rewards of ownership to the buyer requires an examination of the circumstances of the transaction. In most cases, the transfer of the risks and rewards of ownership coincides with the transfer of the legal title or the passing of possession to the buyer. This is the case for most retail sales. In other cases, the transfer of risks and rewards of ownership occurs at a different time from the transfer of legal title or the passing of possession. 
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When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• (a)  the amount of revenue can be measured reliably; 
• (b)  it is probable that the economic benefits associated with the transaction will flow to the entity; 
• (c)  the stage of completion of the transaction at the end of the reporting period can be measured reliably; and 
• (d)  the costs incurred for the transactio
• n and the costs to complete the transaction can be measured reliably.*   

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends shall be recognised on the bases set out when:

• (a)  it is probable that the economic benefits associated with the transaction will flow to the entity; and 
• (b)  the amount of the revenue can be measured reliably.