How to add a revenue recognition policy for AFS license (example)

Our system requires you to add your own, use this copy

If you are an AFS license, here is an example.

You can copy and paste this:

The Company holds an AFSL license and provides financial planning services.

The Company is the administrator for customers, from which management, brokerage and other revenues are generated. 

Revenue for each of the above revenue streams is recognised as follows: 

Management services - which represents the Companys’ monitoring and management of compliance and adherence to legislative and regulatory requirements, provision of custodial services and provision of fund administration services, are recognised on a straight-line basis over the period in which the services are provided. 

Brokerage services are recognised at the point of time when the transaction giving rise to the brokerage charge has been executed. 

Other services, such as certain financial planning (EG the preparation of report packages) are recognised at the point in time when the goods and/or services are delivered and the outcome is provided. 

All revenue is recorded on an accruals basis. 

All revenue is stated “net” of the amount of goods and services tax (GST).