Further Accounting Standards Flashcards
Revenue, Events after the Reporting Period.
1
Q
What are the 5 stages for recognising revenue?
IIDAR
A
- Identify a contract with the customer
- Identify the performance obligations
- Determine the transaction price
- Allocate the transaction price, based on input and output method
- Recognise revenue as each performance obligation is met
2
Q
When is a contract inside the scope of IFRS 15?
A
When:
- both parties approve a contract
- the right and payment terms is identified
- the contacts have commercial substance
- It is probable the entity will collect the consideration to which it is entitled
3
Q
What happens to events that occur after the reporting period?
Give 5 examples
A
An adjustment must be made in the financial statements if it is a material amount like:
- Provisions
- Impairments of an Asset
- Receivables insolvency
- Going Concern
- Fruad
4
Q
What happens to Non-adjusting events that occur after the reporting period?
Give 5 examples
A
Disclosure of the event is required in the financial statement:
- An Assets destruction
- An aquisition
- Discontinued operation
- Share transactions
- Declared Dividends
