IFRS 15 Flashcards
revenue from contracts with customers (9 cards)
1
Q
5 steps?
A
- identify contract
- identify performance obligation
- determine transaction price
- allocate transaction price to performance obligation
- recognise revenue for satisfied performance obligation
2
Q
criteria not met at inception?
A
- all five criteria of paragraph 9 must be met
- in the period that all criteria is not met, recognise as liability (dr bank, cr liability)
- recognise liability as revenue when contract terminated & deposit is non- refundable (dr liability, cr revenue)
3
Q
paragraph 9 criteria?
A
an entity shall account for a contract only when all of the following criteria are met:
- parties have approved the contract and are committed to perform their obligations
- can identify each party’s rights
- can identify the payment terms
- the contract has commercial substance
- it is probable that the entity will collect the consideration to which it will be entitled to
4
Q
criteria met at inception, but subsequently not met?
A
- while all criteria met: revenue is recognised (dr debtor, cr revenue)
- when significant change in facts and circumstances occur: recognise a liability (dr debtors, cr liability)
5
Q
distinct?
A
able to benefit from each good/ service separately
6
Q
distinct must prove?
A
- type sold & provided to customers on separate basis
- can generate economic benefits from each good/ service
7
Q
distinc in terms of contract?
A
promise to transfer is separately identifiable
not distinct in terms of contract if the promise to combine/ use as input to create output
8
Q
both criteria for distinct in paragraph 27 not met?
A
not individually distinct, but grouping together = 1 distinct bundle
9
Q
highly independent?
A
promises = separately identifiable
