Do You Recognize This Revenue?

Nonprofit Eye: Why is the subject of Revenue Recognition suddenly so important? File it under “Blame it on Enron”. When this infamous company decided to recognize revenue based on their projection of future sales (NOT completed sales), they opened the door to a previously unimaginable new school of what I would call “Fictional Accounting”. The guys who came up with this scam were known as "The Smartest Guys in the Room". Were they? The answer is yes (and no) and yes.