IFRIC 12 Service concessions accounting

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Last update 01/11/2019 This is what this is about – IFRIC 12 Service concessions accounting. There is no definition in IFRIC 12 but a characteristic included is as follows: a service concession: “typically involves a private sector entity (an operator) constructing the infrastructure used to provide the public service or upgrading it (for example, by … Read more

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