IFRS 15 Revenue from customer contracts

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

Topics hide IFRS 15 Revenue accounting examples IFRS 15 Sales of goods by agents Concession outlet within a department store Excise taxes and duties IFRS 15 Revenue accounting examples IFRS 15 Revenue accounting examples provides some special examples for IFRS 15 Revenue from contracts with customers: Sales of goods by agents, Concession outlet within a … Read more

Topics hide IFRS 15 Technology sector 1. Identify the contract Case – Assessing collectability for a portfolio of contracts Case – Assessing collectibility with a history of price concessions Case – Collection not probable Contract modifications 2. Identify performance obligations Case – Sale of hardware and installation services – separate performance obligations Case – Sale … Read more

Topics hide IFRS 15 Retail revenue – finest perfect examples Case – Customer incentives Buy three, get coupon for one free Case – Customer incentives – Discount coupons Case – Customer incentives – Discount coupons / free products rebate Case – Loyalty programs Case – Gift cards Case – Right of return Case – Price … Read more

Topics hide IFRS 15 Media and entertainment M&E Licenses The nature of a company’s promise in granting a license Case – License of a sports team brand Contractual restrictions in license arrangements Case – M&E License restrictions – restrictions are an attribute of the license Case – License restrictions – distinguishing multiple licenses from attributes … Read more

Topics hide IFRS 15 Industrial products 1. Identify the contract with the customer Contract modifications Case – Widgets manufacturer 2. Identify performance obligations 3. Determine transaction price Volume rebates Volume discounts Consideration payable to a customer Case – Volume rebate Case – Prospective volume discount 4. Allocate transaction price 5. Determine transfer of control and … Read more

Topics hide IFRS 15 Real estate Key points IFRS 15 core principle Does a contract include more than one performance obligation? 1. Identify the contract(s) with the customer Contract combination Accounting for contract modifications Case – Unpriced change orders 2. Identification of performance obligations Real estate management – considerations Real estate developers – considerations Case … Read more

Topics hide IFRS 15 Mining Revenue Definition of a customer Production sharing arrangements Forward-selling contracts to finance development Product exchanges Interaction with other standards Agency relationships Principal versus agent considerations Delivery – CIF contracts or FOB contracts Cost insurance and freight (CIF contracts) Free on board (FOB contracts) Satisfaction of performance obligations Provisional pricing arrangements … Read more

Topics hide Telecommunications Revenue The five-step model Specific topics Significant Financing Component Non-refundable upfront fees Warranty or additional services Costs to obtain a contract Case – Incremental costs of obtaining a contract — telecommunications industry Amortization of contract cost assets Telecommunications IFRS 15 Revenue from contracts with customers in the Telecommunications-industry main impact lies in … Read more

A closer look at IFRS 15 the new revenue model – IFRS 15 establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. A closer look at IFRS 15 the … Read more