## Goods Sold Subject to Inspection / Installation

When goods require installation, revenue recognition depends on the complexity of installation:

### Case 1: Easy/Simple Installation

Revenue from goods is recognised on the date of sale
Revenue from installation service is recognised after installation is complete

### Case 2: Complex Installation

Sub-case	Revenue Treatment
Customer does NOT accept goods until installation is complete	Both goods revenue + installation revenue recognised after installation is complete
Customer accepts goods before installation (e.g., pre-payment or formal acceptance)	Goods revenue recognised on date of acceptance; installation revenue after installation complete

### Decision Tree:

```

Installation complex?

├── No → Book goods revenue now; installation revenue after install

└── Yes → Customer accept before install?

├── No → Both revenues after install complete

└── Yes → Goods revenue on acceptance date; install revenue after install

```

Worked example

### Example 1

AK purchases an iPhone from Apple (installation = setting up account, easy):

### Example 2

AK purchases a 70-inch TV requiring complex wall installation:

Scenario A (customer does not accept until installation done): Both TV revenue and installation revenue are recognised after installation is complete.
Scenario B (customer accepts TV, then arranges installation): TV revenue recognised on date of acceptance; installation revenue after installation is complete.

⚠️ Common exam mistakes

Booking full revenue (goods + installation) on date of sale when installation is complex and the customer has not yet accepted the goods.
Delaying goods revenue until installation is complete even when installation is simple — simple installation does not delay goods revenue.
Mixing up the two sub-cases of complex installation — always check whether the customer has formally accepted the goods before installation.

Reference:

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AS 9 – Goods Sold Subject to Installation

Worked example