IFRS 15 Revenue from customer contracts

IFRS 15 Measuring progress to completion – Best complete explanation

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Topics hide IFRS 15 Measuring progress to completion Introduction Practical expedient in IFRS 15 for recognition of revenue over time Selecting a method to measure progress Time-based measure of progress: Technical support services Time-based measure of progress: Unspecified updates Determining which measure of progress to apply is not a free choice(IFRS 15.BC159) Single method of … Read more

Electricity revenue recognition example

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Topics hide Electricity revenue recognition example Application of the five-step model Electricity revenue recognition – IFRS 15 step-by-step Step 1 – Identify the contract with a customer Step 2 – Identify the performance obligations Step 3 – Determine the transaction price Step 4 – Allocate transaction price to the performance obligations in the contract Step … Read more

Contract modifications in power and utilities – Best IFRS 15 Revenue recognition

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Topics hide Contract modifications in power and utilities Blend and extend arrangements Case – Contract modification prospective basis Case – Contract modification – construction services arrangement: cumulative catch-up adjustment Contract modifications in power and utilities One of the most judgemental aspects of implementing IFRS 15 for power and utilities entities is applying the contract modifications … Read more

IFRS 15 Power purchase agreement

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Topics hide IFRS 15 Power purchase agreement Case – Identify the performance obligations (power purchase agreement (‘PPA’)) Case – Identify the performance obligations (gas supply agreement) Case – Identify the performance obligations (design and build a power plant) Take-or-pay power supply and similar long-term energy supply agreements Failed own use on trading contracts IFRS 15 … Read more

Transaction price power and utilities

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Topics hide Determining the transaction price power and utilities Variable consideration power and utilities Case – Variable consideration: performance bonus Case – Price protection if competitor subsequently lowers price Provisional pricing arrangements power and utilities Case – Variability arises from market price only Case – Variability arises from physical attributes only Case – Variability arises … Read more

Interest free loans in IFRS 9 and IAS 20

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Interest free loans As prescribed in IFRS 9.B5.1.1, a loan payable or receivable that carries no interest should be recognised at fair value measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (currency, term, etc.) with a similar credit rating. An incremental … Read more

Contingent

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Topics hide Contingent IFRS 3 Business combinations Buyer’s accounting for royalties and milestones payable to a seller in a business combination Contingent consideration in a business combination Assumed contingent consideration Compensation IFRIC 12 – Service Concession Arrangements Accounting model IFRS 16 Leases Lease Options to Extend or Terminate IAS 19 Employee benefits – Measurement Shared … Read more

IFRS 15 Practical alternative for similar goods or services

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Topics hide Practical alternative for similar goods or services Case – Applying the practical alternative Alternative approach not limited to renewal options More than one acceptable approach to determine the expected goods or services to be provided Practical alternative for similar goods or services If the goods or services that the customer has a material … Read more

IFRS 15 Consumer products revenue accounting – Complete best read

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Topics hide IFRS 15 Consumer products Product sales from consumer products companies to retailers Case – Transfer of control Case – Right of return Case – Consignment arrangements Case – Volume discount Case – Bill and hold arrangements Case – Shipping terms Contractual arrangements between consumer products companies and retailers other than product sales Case … Read more