Tax Revenue Recognition Principles

Public Sector Accounting (PSAS) · 4:09

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Lyrics

[Verse 1]
When the government collects what's due
Revenue recognition has rules for you
Income taxes earned when obligations rise
Property taxes when the levy applies
Timing matters in this fiscal game
Accrual accounting keeps it all the same

[Chorus]
ARISE - Accrual Recognition In Systematic Events
When earned not when received, that's the defense
ARISE - Authority Rights Income Systematic Events
Tax revenue flows when the obligation presents
ARISE, ARISE, let the timing be wise
ARISE, ARISE, when the legal duty applies

[Verse 2]
Property taxes at the lien date start
When government's claim becomes legal art
Sales taxes due when the transaction's made
Collection timing cannot be delayed
Exchange transactions need performance clear
Non-exchange when authority draws near

[Chorus]
ARISE - Accrual Recognition In Systematic Events
When earned not when received, that's the defense
ARISE - Authority Rights Income Systematic Events
Tax revenue flows when the obligation presents
ARISE, ARISE, let the timing be wise
ARISE, ARISE, when the legal duty applies

[Bridge]
Measurable and available too
These criteria help us see it through
Enforceable claim must be in place
Before we recognize in this space
Deferred inflows when we must wait
Until conditions consummate

[Verse 3]
Income taxes when assessment's done
Property values when the year's begun
Sales and use taxes at transaction time
Government levies when laws align
Purpose restrictions might delay the call
Until compliance satisfies them all

[Chorus]
ARISE - Accrual Recognition In Systematic Events
When earned not when received, that's the defense
ARISE - Authority Rights Income Systematic Events
Tax revenue flows when the obligation presents
ARISE, ARISE, let the timing be wise
ARISE, ARISE, when the legal duty applies

[Outro]
Recognition principles guide the way
For all tax revenues day by day
ARISE and shine with timing right
Tax accounting done with insight

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