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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 05/02/2019 Accounting policy example Financial assets are recognized initially at fair value, normally being the transaction price plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The subsequent measurement of financial assets depends on their classification, as set out below. The group derecognizes financial assets … 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 13/07/2019 A general definition/description is: A financial asset is a tangible liquid asset that gets its value from a contractual claim. Cash, stocks, bonds, bank deposits and the like are examples of financial assets. Unlike land, property, commodities or other tangible physical assets, financial assets do not necessarily have inherent physical worth. See … 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 04/08/2019 Financial information that faithfully represents the phenomena that it purports to represent. A faithful representation provides information about the substance of an economic phenomenon instead of merely providing information about its legal form. A perfectly faithful representation would be complete, neutral and free from error. Providing a faithful representation is one of … 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 24/11/2019 Fair value through profit or loss—any financial assets that are not held in one of the two business models (‘Hold to collect‘ and ‘Hold to collect and sell‘) mentioned are measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss. This is part of … 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
Last update 10/12/2019 Financial assets measured at fair value through other comprehensive income – this is part of the classification of financial assets. A financial asset is classified as subsequently measured at fair value through other comprehensive income (FVOCI) if: the contractual terms of the financial asset give rise on specified dates to cash flows … Read more