Query in IAS 18 interpretation

Uday Kanth (Consultant) (71 Points)

08 September 2009  

IAS 18 talks about revenue and it states, for Interest it should be recognised as follows.

Interest on time proportion basis that takes into account the effective yield.

Can some one please explain what does this mean?

1.  Recognistion of interest on time proportion?

2. What is effective yield here?

regards

Uday Kanth