Source: wikibot/deferred-measurement-principle

= Deferred measurement principle
{wiki=Deferred_measurement_principle}

The Deferred Measurement Principle, commonly referred to in accounting and finance, relates to how certain items are recognized and measured in financial statements. Specifically, it addresses the timing of when revenues and expenses are recognized, distinguishing between cash accounting and the accrual basis of accounting. Under the Deferred Measurement Principle: 1. **Revenue Recognition**: Revenues are recognized when they are earned, not necessarily when cash is received.