Identify three different industries and explain the revenue recognition practices that would be applied to entities within each industry

Some of the type of industries includes agricultural, mining, and electronic industries. During their production processes, various kinds of revenue recognition practices are observed in the industries. Under IAS 18, mining sector recognizes revenue based on the sales of goods and the focus is on the risks and rewards. They refer to the INCO terns with Free on Board (FOB) as well as Carriage Insurance and Freight) that are viewed to be the main forms of recognition in the industry. The reason why revenue recognition is important is to make sure that there is elimination of the various inconsistencies in various businesses that ensure transparencies.

Agricultural sector uses four main steps to recognize their revenues and this include reviewing the revisions, analysis of the agreements, identifying contracts with customers, identifying the performance allegations in the contract, determining the transaction price, and lastly disclosing the revenue. In electronic industry, some of the recognition methods include the sales basis method, completed contract method, and instalment. From the discussions, it is clear that there are many similarities that exist amongst the companies when recognizing their revenues and one of them is identifying their allegation in contract. The differences occur in the manner of disclosing their revenues but at the end of the day, they all have to oblige.