IFRS Topics

Last update 17/12/2019 Contract modification and derecognition – A contract that qualifies as an insurance contract remains so until all rights and obligations are extinguished (i.e., discharged, cancelled or expired) unless the contract is derecognised because of a contract modification [IFRS 17 B25]. IFRS 4 contained no guidance on when or whether a modification of … Read more

Last update 25/11/2019 Contract enforceability and termination clauses is about those troubles, get your money as entitled or end a contract before you lose too much money. An entity has to determine the duration of the contract (i.e., the stated contractual term or a shorter period) before applying certain aspects of the revenue model (e.g., … Read more

Last update 16/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more

Last update 08/11/2019 IFRS 15 for contract costs1 specifies the accounting treatment for costs an entity incurs to obtain and fulfil a contract to provide goods or services to customers as discussed below. An entity only applies these requirements to costs incurred that relate to a contract with a customer that is within the scope … Read more

Last update 18/11/2019 Contract assets and contract liabilities relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. IAS 11 required entities to record contract assets for unbilled accounts receivable when revenue is recognised but not billed. Contract … Read more

Last update 21/12/2019 Construction warranties – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Construction warranties Construction warranties Construction warranties Construction warranties  Warranties may fall into several categories. If the contractor provides the customer … Read more

Last update 26/11/2019 Construction Variable pricing is about a thing that happens quite a lot in the construction industry. Additions, extras, deletions, you name in construction they use it…. How to measure construction contract revenue: variable consideration – variable pricing? If the consideration promised in a contract includes a variable amount, then an entity estimates … Read more

Last update 26/11/2019 Construction of a residential home provides a case to better understand the accounting issues in construction activities. Home-builder B enters into a contract to build a new home for a customer on land owned by Home-builder B. Ownership of the home and land are transferred to the customer when construction is completed. … Read more

Last update 26/11/2019 Construction contracts revenue over time or at a point in time? – In the this has been a enthusiastic discussion back and forth, and that is what it still is…. The rule: If the contract arrangements do not permit revenue to be recognised progressively, then revenue is recognised at a specific point … Read more

Last update 26/11/2019 Construction contracts Measuring progress relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. When a performance obligation is satisfied over time, the standard provides two types of methods for measuring progress under the contract: input methods … Read more