Novation Holdings Inc | 2013 | FY | 3


The Company recognizes revenue in accordance with FASB ASC 605 on revenue recognition for consulting and ISP services. Revenue from consulting and ISP services will be recognized only when persuasive evidence of a sale or arrangement with a customer exists, price if fixed and determinable, services have been performed, and collectability of the resulting receivable reasonably assured.

 

Cash received in advance of meeting the revenue recognition criteria described above is recorded as deferred revenue.


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