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This illustrates
an imposed nonexchange transaction.
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The City should
recognize a receivable on January 1, 20x1 which is the date an enforceable
legal claim arises.
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Revenues should
be recognized for the period May 1, 20x1 to April 30, 20x2 because it is the
levy period for which the tax is applicable.
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Any amounts
collected between March 1, 20x1 and May 1, 20x1 should be DEFERRED until May
1, 20x1 as they are collected in advance of the levy period.
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