Identifying the customer or collaborative arrangement

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Last update 15/09/2019 The revenue standard excludes from its scope contracts with a collaborator or a partner that are not customers, but rather share with the entity the risks and rewards of participating in an activity or process. However, a contract with a collaborator or a partner is in the scope of the revenue standard … Read more

Identifying the contract – contract extensions

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Last update 15/09/2019 When an entity and its customer enter into a contract to renew (or extend the period of) an existing licence, the entity will evaluate whether the renewal or extension should be treated as a new licence or, alternatively, as a modification of the existing contract. A modification would be accounted for in … Read more

Identifying an asset group for valuation purposes

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Last update 26/11/2019 Identifying an asset group for valuation purposes is a starting point as one of many scenarios in considering the sale of (part of) a business. An entity acquires assets and assumes liabilities in a business combination. One of the groups of assets acquired comprises Assets A, B and C. Asset C is … Read more

Identify the performance obligations in the contract

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Last update 21/12/2019 Identify the performance obligations in the contract – 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. Identify the performance obligations in the contract Once an entity has identified the contract with … Read more

Identify the contract with the customer

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Last update 21/12/2019 Identify the contract with the customer – 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. Identify the contract with the customer The model in IFRS 15 applies to each contract with … Read more

Identify Telecom industry performance obligations

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Last update 16/09/2019 This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? Example one: A telecoms company enters into a contract for the sale of a mobile device and connection to its mobile network. The contract, which lasts for two years, gives … Read more

Identify Software industry obligations – Customisation

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Last update 16/09/2019 This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? Identify Software industry obligations – Customisation Scenario B Identify Software industry obligations – Customisation >>>>> See scenario A here, and scenario C here Information from scenario A: A vendor enters into … Read more

Identify Property development obligations – Single contract

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Last update 16/09/2019 This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? The scenarios in the following example demonstrates how two transactions which are substantively very similar but have different legal contract structures are accounted for in the same way (illustrating how … Read more