It is generally agreed that sales revenue should only be 'realized' and so 'recognized' in the trading, profit and loss account when: 1. The sale transaction is for a specific quantity of goods at a known price, so that the sales value of the transaction is known for certain. 2. The sale transaction has been completed, or else it is certain that it will be completed (e.g. in the case of long-term contract work, when the job is well under way but not yet completed by the end of an accounting period). 3. The critical event in the sale transaction has occurred. The critical event is the event after which: 1. i) It becomes virtually certain that cash will eventually be received from the customer. 2. ii) Cash is actually received