IFRS 16 Lease term explained

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Last update 28/10/2019 IFRS 16 Lease term explained or the lease term includes the following items (IFRS 16 18): non-cancellable period of a lease; IFRS 16 Lease term explained periods covered by an option to extend the lease – if the lessee (customer) is reasonably certain to exercise that option; and periods covered by an … Read more

IFRS 16 into the details

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Last update 21/12/2019 Recognition of a lease IFRS 16 into the details To start for the first time a reporting entity has to review all contracts to see whether a specific contract is a lease only or contains a lease component. Looking at the definition of a lease the reporting entity has to assess whether, … Read more

IFRS 15 Software contract modifications

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Last update 06/12/2019 IFRS 15 Software contract modifications – It is common in the software industry to change the scope or price of the contract. For example, a vendor may license software and provide post-contract customer support (PCS) to a customer in an initial transaction and then license additional software to the same customer at … Read more

IFRS 15 Revenue recognition

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Last update 28/10/2019 IFRS 15 Revenue recognition is a primary and fundamental subject in the recognition of revenue. There are two ways of recognising revenue, revenue recognition over time and revenue recognition at a point in time. Revenue recognition over time is often referred to as the ‘Percentage of completion‘ method under the (superseded) IAS … Read more

IFRS 15 Revenue from Contracts with Customers

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Last update 20/11/2019   IFRS 15 Revenue from Contracts with Customers (here is the full standard) establishes 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 … Read more

IFRS 15 Revenue aggregation and disaggregation

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Last update 04/12/2019 IFRS 15 Revenue aggregation and disaggregation – The objective of the disclosure requirements in IFRS 15 is to provide “sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers”. To achieve that objective, entities are required … Read more

IFRS 15 Presentation in main statements

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Last update 03/12/2019 IFRS 15 Presentation in main statements – While an entity must provide sufficient information to meet the objective, the disclosures described in the standards are not intended to be a checklist of minimum requirements. That is, entities do not need to include disclosures that are not relevant or are not material to … Read more

IFRS 15 Create or enhance an asset

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Last update 28/10/2019 IFRS 15 Create or enhance an asset is the second phase for IFRS 15 Revenue recognition. This is part of a primary and fundamental subject in the recognition of revenue. There are two ways of recognising revenue, revenue recognition over time and revenue recognition at a point in time. Revenue recognition over … Read more

IFRS 15 Contracts with customers

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Last update 10/11/2019 IFRS 15 Contracts with customers defines a contract as an agreement between two or more parties that creates enforceable rights and obligations. Based on IFRS 15.9, an entity should account for a contract with a customer that is within its scope only when all of the following criteria are met: The parties … Read more