The Importance of Timing in Revenue Recognition Western Governors University The importance of Timing in Revenue Recognition Ensuring proper time of revenue recognition, it was not so important before than nowadays. SAB 101 from 1999 was the solution to the issue of fraudulent financial reporting with more than 50% of cases involved in overstatement of revenue captured by SEC[CITATION Tur01 \l 1033 ]. Despite of the existence of this regulation, for many companies timing of revenue recognition in the sale cycle has been still the most critical part of this process. And in practice, the timing of revenue recognition may be difficult because of the complexity and diversity of transactions. For example, early recognition of revenue is a common issue in this principle of accounting....