IFRS 15 Revenue from customer contracts

Repurchase agreements in IFRS 15

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Topics hide Repurchase agreements in IFRS 15 A forward or a call option An approach that focuses on the repurchase price Requirements for repurchase agreements not applicable to arrangements with a guaranteed resale amount Conditional forwards or call options Right of first refusal Repurchase agreements in IFRS 15 INTRO Repurchase agreements in IFRS 15 – … Read more

Asset management or investment management

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Topics hide Asset management or investment management Timing of revenue and profit recognition Step 1 – Determine the customer’s identity Step 1 – Apply the contract combination guidance Step 2/5 – Unbundling multiple service obligations within a single contract Step 3 – Treatment of upfront fees Step 3 – Variable consideration: the recognition of Management … Read more

Allocate the transaction price to POs – E&C 1 Best Complete Read

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Allocate the transaction price to POs – 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. Allocate the transaction price to POs Once the performance obligations are identified and the transaction price has been determined, IFRS … Read more

Performance obligations software contracts

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Performance obligations software contracts and cloud services contracts – Once an entity has identified the contract with a customer, it evaluates the contractual terms and its customary business practices to identify all the promised goods or services within the contract and determine which of those promised goods or services (or bundles of promised goods or … Read more

Best 1 complete preparation Satisfaction of construction performance obligations

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Satisfaction of construction performance obligations considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced … Read more

IFRS 15 Vehicle sales by OEMs (Original Equipment Manufacturers) – BEST QUICK READ

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Topics hide IFRS 15 Vehicle sales by OEMs Another example – same subject And yes one more on the run – Repurchase agreement OEM IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs (Original Equipment Manufacturers) shows examples of real life situations, in this case close … Read more

Contract modifications and variable consideration 1 best 2 complete

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Contract modifications and variable consideration are sometimes not easy to distinguish from one another. So here is a discussion bringing them together. IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is … Read more

Licensing provides rights to a customer

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Licensing establishes a customer’s rights to the intellectual property of an entity. Licenses of intellectual property may include, but are not limited to, licenses of any of the following: Software (other than software subject to a hosting arrangement) and technology Motion pictures, music, and other forms of media and entertainment Franchises Licensing Patents, trademarks, and … Read more

Inventory costing 2 better understand

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Inventory costing – is about costs allocated to value inventory in stock at the end of a reporting period and calculate the costs of sales/gross profit earned in a period. Most operations comprise retail or wholesale operations, using relatively simple inventory costing systems such as FIFO, LIFO or Average Costs, other operations such as manufacturing … Read more