Which accounting standard governs the recognition of revenue for sole traders?

Which accounting standard governs the recognition of revenue for sole traders?

Step 1: Understand what a sole trader is. A sole trader is a person who runs their own business and is personally responsible for its debts.
Step 2: Learn about accounting standards. These are rules that help businesses know how to record their financial activities.
Step 3: Identify the relevant accounting standard for revenue recognition. For sole traders, this is IAS 18.
Step 4: Know what IAS 18 does. It explains when a business should recognize or record its revenue.
Step 5: Remember that recognizing revenue means recording it in the financial statements when it is earned, not necessarily when cash is received.

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