[jsally]

Scenario-
Company has a 12/31/12 year-end
Company built a 1,000 widgets to be sold and shipped to a customers stores under a pre-arranged contract. Before the items are shipped, the buyer's president comes in and inspects the widgets, and approves on 12/15/12.

The terms of the sale are FOB shipping point which is directly from the sellers warehouse where the items were approved. The curveball here is that after the items are approved by the buyer, there is a 2 month delay from when shipping addresses are provided by the buyer causing the actual shipping date to occur 2/30/13.

In what year can the seller record the revenue?

[Fidget1]

Just on the information given, I would argue that ownership passed at the point the goods were approved by the president of the buying company because they were ready to be shipped at that point, even though they weren't shipped for another 2 months. Therefore the sale recorded in 2012.

Something that is certain though - there is no Feb 30 in any year!