Step 4 Allocate the transaction price

by

Last update 26/11/2019 Step 4 Allocate the transaction price to each specific performance obligation is the fourth step in the process required by IFRS 14 Revenue from contracts with customers in order to properly recognise revenue. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has … Read more

Step 3 Determining Transaction Price

by

Last update 14/11/2019 Step 3 Determining Transaction Price is all about correct revenue accounting in respect of the transaction price for the contract as part of IFRS 15 Revenue from contracts with customers. Step 3 Determining Transaction Price IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries … Read more

Step 3 Define significant increase in credit risk

by

Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Step 2 Identify the performance obligations in the contract

by

Last update 26/11/2019 Step 2 Identify the performance obligations in the contract is the second step in IFRS 15 Revenue from contracts with customers. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has changed revenue recognition quite significant. Step 2 Identify the performance obligations in … Read more

Step 2 Decide to use the general or simplified approach

by

Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Step 1 Identify the contract with the customer

by

Last update 14/11/2019 Step 1 Identify the contract with the customer is the starting point of IFRS 15 Revenue from contract with customers. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has changed revenue recognition quite significant. Step 1 Identify the contract with the customer … Read more

Step 1 Define Default

by

Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Staff retraining as a result of changes in the income tax system

by

Last update 17/12/2019 Staff retraining as a result of changes in the income tax system – Example on recognising and measuring provisions Topics hide The case: Consideration: Key definitions [IAS 37 10] Recognition of a provision Staff retraining as a result of changes in the income tax system Related posts: The case: The government introduces … Read more

Sponsor Accounting for a Pension Asset

by

Last update 22/12/2019 Sponsor Accounting for a Pension Asset – A pension asset arises when total contributions by the sponsor of a defined-benefit plan (plus interest income) are greater than all pension expense since the plan’s inception. Sponsor Accounting for a Pension Asset For example, a pension plan fund had a net pension asset of … Read more

Specified upgrades for software contracts

by

Last update 03/12/2019 Specified upgrades for software contracts – Entities may provide customers with the right to specified upgrades or enhancements as part of a software arrangement. Under IFRS 15, entities will need to evaluate whether the rights to receive specified upgrades or enhancements are promised goods or services and potentially separate performance obligations. If … Read more