Recognition is a process that consists of verifying revenue from the sale of goods, at the time of initial recognition of a foreign currency transaction, an entity shall record it by applying to the functional currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
According to the preceding article, the initial recognition of foreign currency transactions shall be recorded by applying the functional currency amount by virtue of the exchange rate.
Under IFRS, an entity shall measure revenue from ordinary activities at the fair value of the consideration received or receivable.
The fair value of the consideration received or receivable takes into account the amount of any trade discounts, cash discounts and volume rebates that are practiced by the entity.
In other words, sales revenue should be measured at the fair value of the consideration received, taking into account conditions such as volume or cash discounts and rebates.