VASPs face a critical decision: should revenue be recognized on a gross or net basis? This hinges on whether they act as principals or agents, following IFRS 15 guidelines. Accurate revenue reporting ensures compliance and reflects financial performance.
Paypal Holdings is a payment service provider, listed as an entity in the United States. According to PayPal’s financial statement, revenue is recognized on a net basis.
Sinohope Technology Holding is an OTC Trading company, listed as an entity in Hong Kong. According to Sinohope’s financial statement, revenue is recognized on a gross basis.