Hi, Silvia. The best way to determine a stand-alone selling price is simply to take observable selling prices and if these are not available, then you need to estimate them. I hope this could be rectified even if it is obvious. This security card costs are expensed in the p&l. IFRS 15 Revenue from Contracts with Customers includes extensive disclosure requirements that affect all entities.. Key areas of impact on the transition to IFRS 15 entities included changes to presentation within the balance sheet, identification of performance obligations and the timing of revenue recognition. Can I ask another question about the adoption method (full retrospective adoption and modified retrospective adoption)? We are a national road agency deriving revenue from e-tolls. US$40.27. IFRS 17 is the newest IFRS standard for insurance contracts and replaces IFRS 4 on January 1st 2022. I’m recording damaged sales of current year in following way: My apologize for wrong spelling of your name before. (c) For business purpose, the spread of $100 is not disclosed so when invoices are issued to cargo owners, $500 is always stated together with the applicable Sales Tax and Withholding tax is deducted by Cargo owners on the $500 quoted. Hi Muhammad, I pointed you to this article because I have the same position to your case as I took in the article. Thank you! The auditors’ report in the financial statements contains their opinion on the financial statements. IFRS For Dummies provides all the facts you need to understand the complex world of international financial reporting, along with plenty of practical, real-world examples. For the “Full Retrospective Approach” does this apply to your Revenue line item on your Income Statement ONLY? I have one question about the double entries under IFRS 15. The transportation costs to be reimbursed by the customers are billed together with the agreed transportation service fees. Dear, Last months I have given several workshops of Bank Analyzer, and the implications of the new IFRS 9 regulation, which was issued by the International Accounting Standard Board on 24 July 2014, and it is mandatory from 1 January 2018. What is the appropriate amount of Sales tax that should be charged. This means that if a company has control over, or right to use, an asset they are renting, it is classified as a lease for accounting purposes and, under the new rules, must be recognised on the company’s balance sheet. I am looking for way around to avoid this non necessary sales entry under IFRS guidelines. I just wanted to ask, can we recognise revenue on completion of a part of a performance objective? If the auditors show a disclaimer of opinion, you’re in boiling hot water: circumstances mean that the auditor can’t form an opinion on the financial statements (for example, you’ve lost all the accounting records). Company sold fertilizers to farmers . Then when you receive the reimbursement from client the entry is Dr Cash Cr Trasnsportation cost to reverse the initial transportation cost in P&L. In this case, we would need to account for significant financing component. Information in IFRS financial statements has these characteristics: Relevance: So that it makes a difference to the decisions about a company made by users of the statements. Well, the return is an event of the current reporting period – isn’t it? Thanks for this. Can we revalue land that are for sell or for the purpose of constructing building and sold afterwards. In terms of identifying performance obligation (PO), I see that selling of engine, commissioning and warranty as one PO, training of customer as one PO, and finally spare parts as another separate PO. Thus make an adjustment in the current reporting period. If IFRS 15 has no impact on the company for the prior reporting periods, Does the company still need to choose one of the adoption method? Is it correct? 3. We must recogonize revenue based on actual completion of performance obligation instead (at the point of handover and accepted by client). A series of distinct goods or services that are substantially the same and have the same pattern of transfer. I think under the Revenue over time box should be “based on progress” while the Revenue at the point of time should be “when control is transferred”. The Financial Statement are already issued and the revenues account has been closed in the retained earnings. implied by some customary practices). 1) It depends on what it is. I have written 2 articles about the new rules in the past, namely: In today’s article, I’d like to point out the main rules and principles of IFRS 15. IFRS 15 and ASC 606, which both come into effect soon, state key revenue recognition principles that will apply across international territories and industries. If you have no contractual right to receive money on order, then you should not book anything at all. A collects 123 from customer. wander if you can help me clarify principles of reporting on a Principle Agency transactiom To exemplify my issue : pdf Download pdf (250.8 KB) It means that you need to estimate the transaction price. However, holding company already recognized the rent revenue, and the subsidiary recognized rent expense. And what would be accounting treatment for last year sales return? It was the subject of a joint project with the Financial Accounting Standards Board (FASB), which issues … It makes easy understanding revenue . Host contract is the contract for sale of non financial assets. The question is whether similar trades in Ukraine are normally performed in USD or not – if yes, you don’t need to separate. IFRS 15 sets the criteria for combined accounting. The 5 steps are shown in the following picture: A contract is an agreement between 2 parties that creates enforceable rights and obligations (IFRS 15, Appendix A). S. Hi Silvia If the objective is to dig a 20 meter hole and as at year end a 10 meter hold is dug. Based on the definition above, I am assuming there is no change from 01/01/2018. The reason is that in further steps, you will account for distinct performance obligations and their revenues separately, in line with their allocated transaction price, and if you fail in the correct identification of distinct performance obligations, then the whole contract accounting will be wrong. Contract modification is the change in the contract’s scope, price or both. No idea I buy these illustrative pictures from stock photo and yes, he is cute, agreed! Paragraph 10 of IFRS 15: “A contract is an agreement between two or more parties that creates enforceable rights and obligations. great explanation , easy to understand & remember the ifrs terminology …. A qualified opinion (which sometimes follows with the words except for) generally means that the auditors don’t agree with the way you treated something in the financial statements. Hi Sylvia Right ?? IFRS For Dummies provides all the facts you need to understand the complex world of international financial reporting, along with plenty of practical, real-world examples. But the problem is, until now November 2017, the rent contract still not signed by both party due to administration reason. It’s up to you to assess your specific situation. Please look at this Q&A to see the difference between contract asset and trade receivable. Can we continue this upfront revenue recognition of connection fee as per IFRS 15? In all other cases, revenue is recognized at the point of time. Under IFRS 15, as we have no contractual right, we have to Dr Contract asset but where will be the Cr entry going to? S. Hi silvia.. When can we consider that a Sale and leaseback transaction is NOT a sale under IFRS 15? Understandability: You present and classify information clearly and concisely to make it understandable to users. Historical information quickly becomes out of date. (b) It charges cargo owners the sum of $500 and pays truck drivers $400 to move goods to the cargo owners. thank you very much . Let me say that this is extremely important and you must do it right. I think it will help me a lot with my ACCA P2 Corporate Reporting exam. Inventory _ Cr. Hi Sylvia 1. Sponsorship Amount. First, you need to take the price stated in the contract as some basis (if applicable). The initial journal entry is Dr Transportation cost Cr cash. What will be the cost of sales. Can i say i have contracts with customers (ability and intention is difficult to assess here). How is ifrs 15 applicable to work in progress in construction company? My company is a trading company and normally take two months delivery of goods to customer’s warehouse. Many thanks for your detail explanation of this complicate standard. Hi Silvia, S. Hi Silvia, We recognise commissions as revenue on insurance products we sell. I would say that the basic electricity transactions will be accounted for just in the same way as before. Please elaborate. Contract combination happens when you need to account for two or more contract as for 1 contract and not separately. It is you expectation of what your receive. Hi Tam, are you sure you need to recognize revenue at the point of time in this case? I just noticed that the diagram on “when to recognize revenue?” contains an error. A invoices the agreed net rate to B and collects cash . You can watch the video about IFRS 15 here: report "Top 7 IFRS Mistakes" + free IFRS mini-course. IFRS 9 for Dummies. thanks a million Silvia for this article. that should not effect your treatment of recognition of revenue. So impresed with your easy explanations. I would say NO, because IFRS 15 guides revenues from contracts with customers and you cannot say that donors are customers of the charitable organization. You get the point. It means that with a construction contract, percentage of completion method is no longer can be used. report “Top 7 IFRS Mistakes” As the requirements of IFRS 15 are very extensive and demanding, IFRS 15 permits 2 methods of adoption: IFRS 15 also prescribes some presentation rules, necessary disclosures and provides further guidance in the specific circumstances in the implementation guidance. Could you please help me with the question below: What’s changing with ASC 606/IFRS 15 and why. What do you think? 5. However, I am unsure of how to determine a discount rate to use. Thank you. The transaction price is the amount of consideration than an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (IFRS 15 Appendix A). Thanks for your continuous efforts to make us knowledgeable of IFRSs and any change of it. Be sure to regularly check the IASB’s website to keep up to date with developments. IFRS (International Financial Reporting Standards) has to frequently change to keep up with the world’s demands. retains Net 100 . Broadcasting. Objectives of today 24 April 2019 3 # 1 Increase awareness and encourage engagement 2 Understand key elements of the IFRS 17 exposure draft 4 Highlight areas of uncertainty, difficulty and areas of focus 3 Create a common language to enable discussions 5 Encourage discussions around potential challenges for you This new IRFS5 has big impact to my company and I have a question which I hope you will be able to give me some advice. They introduce concepts such as performance obligations and significant finance components, which could affect the revenue recognition of professional services organizations. S. Could you please tell me what is the other standards we can use if the 5 criteria didn’t meet? To my understanding, regarding the “TRANSPORTATION COST” it is not your cost nor your revenue , your company is just acting as agent for third party(government). S. Thank you so much, appreciate your assistance. Clear explanations to IFRS 15, I really appreciate Silvia. IFRS For Dummies provides all the facts you need to understand the complex world of international financial reporting, along with plenty of practical, real-world examples. Other than that – yes, it is a sort of revenue in the income statement. How we will pass journal entries for capitalising Costs to obtain a contract. Employees are provided with a security card for free when employed. under licence during the term and subject to the conditions contained therein. For the “Modified” Approach are you saying that currently ( Assume 31/12/2017 Year End) an entity can disclose Revenue inline with IAS 18 however from 2018 onwards the only effect will be shown through Retained Income? Hi, (e) Company A in most cases make advance payment to truck drivers to mobilize them to quickly deliver, however, it doesn’t get paid by cargo drivers until waybill is stamped showing actual delivery of items by cargo drivers. your explanation is very clear. Faithful representation: Financial statements are complete and free from bias and error. 914.40/12 = 76.20 each month. The easy way to get a grip on International Reporting Standards IFRS For Dummies is your complete introduction to IFRS and international accounting and balancing standards. Will IFRS 15 applicable to above 3 points or not. First of All, you are awesome and your lectures are twice Awesome. it’s hosted by YouTube, so unfortunately, I can’t really do anything about stopping after 4 minutes. Cr Revenue – $150 and Dr discount/cost of Service – $150 or should no revenue be recognised as it nets off to 0. Just a doubt for the article, for the figure/diagram of the step 5 Recognize revenue when the entity satisfied a performance obligation, S. Hi Silvia, thank you so much. S. Thank you for your great work on revenue recognition. We just recognise the transportation service fee as our income. Total amount collected from employees is about Usd 900. Assume the following: In Real Estate Company they usually have large land bank. But the EW starts after 3 years of manufacturer’s warranty. etc. The standard provides a single, principles based five-step model to be applied to all contracts with customers. I think it wouldn’t be a fair presentation. Qualified (unclean): Uh-oh. Can company classify Receivables as financial assets subsequently measured at fair value? Consumer Dummies. Surely it is ruling as point in time of revenue recognition and therefore sales will be recognized once goods received by customer. b) Net rates – B sells to customer with a mark up can be anything upward to A’s retail price and collect margin ( difference between price sold to customer and net rate as commission directly from customer. Please bear in mind that tax rules can differ from the IFRS rules and yes, although it is not a sale (just swap under IFRS 15), you might need to pay income taxes in line with your tax legislation. However, it would be great if you can enlighten this. Good artikle about IFRS 15. In 2011, Steve was named Accounting Technician of the Year at the British Accountancy Awards. In the past few years, the revenue recognition rules changed dramatically with introduction of the new standard IFRS 15. Company A ( principle) provides services to Company B ( Agent) who sells Company A products to Customers thru their website . For example, imagine you construct a building for your client. Dear Madam, Please check this Q&A, I described it there. The easy way to get a grip on International Reporting Standards. I say more about that in my IFRS Kit, so check it out if you need. I think this Q&A episode will give you some answer to that. I appreciate it…. B sells it at 95 and keeps 25 as commission. Hi Jane, Dear Hashem, 2) It’s a customer-based relationship. Hi Hashem, this depends on the specific transaction, but for example, IFRS 9 Financial instruments, IAS 16, etc. Cr ???? Accounts receivable_Cr. II) Inventory_Dr. However, any replacements due to loss or damage are charged on the employee at Usd 10. All Rights Reserved. But how should we determine the discount rate? For the case above, do you think it is appropriate for the holding to recognize the rent revenue? Combining all the facts needed to understand this complex subject with useful examples, this easy-to-read guide will have you on top of IFRS in no time. Thank you for your answer…. if you do not need to separate => treat the whole receivable + forward as a hybrid contract, i.e. This is just a swapping to fulfill the needs of each other and save the time of shipping. when IFRS 15 was issued, it automatically amended IFRS 9 and the new paragraph 5.4.1 A was added – it clarifies the dividend income. The price of goods were 1000 dollar under the contract, but buyers will pay hryvni within 1 year – on 2017 March, 3 according to exchange rate on the date of payment. If I have a license contract with a customer for 4 yrs, whereby the revenue is recognised point in time at the inception of the contract (i.e. IFRS For Dummies by Steven Collings, ... 15 Jul 2013. Except for these 5 steps, IFRS 15 arranges a few other areas, such as…. Hi Silvia – Thanks for illustrating IFRS 15, excellently. some mutual development projects with other entities), therefore take care! S. Dear Silvia, A supplier has been contracted to supply the raw materials e.g laminators etc but the printing is done by the company. if you determine that the control passes to a customer when the good is actually delivered (this might not always be the case, e.g. Thank you so much! IFRS 15 provides a guidance about two types of costs related to the contract: As I’ve written above, you have to apply IFRS 15 mandatorily for all periods starting on 1 January 2018 or later (earlier adoption is permitted). Explicit explanation. Cr Sales Before you actually start, you build a small mobile toilet for your workers. They have 3 types of Sales Revenues: I would be glad to have clarifications on how revenue is recognized in a Logistics company that serves as intermediary between two parties. That’s really helpful. How should the advance payment to truck owners be treated. Please advise how to account for brokerage income of a securities broker which receive commission and advisory fee from its client under IFRS 15. 2) the good or service is distinct within the context of the contract (the promise to deliver is separately identifiable). IFRS 15 suggest a few methods for estimating stand-alone selling prices, such as adjusted market assessment approach, etc. Hi Silvia, Hi Wendy, technically speaking you are right (or better said, speak about unseparable bottles within one package, some companies sell only by 6 pieces in 1 pack and in this case, the pack is a separate PO), but if all bottles are to be delivered at the same time, then you can group them and recognize the revenue at the point of time in total. Hi, may i know how to recognize the revenue of a business which is renting vehicles for 1-7 days to customers. How do the “control” connect to the telco scenario? If a company is reimbursed for overtime which is not part of original contract, do we treat this cost reimbursement as revenue, other income or we net it with expenses? Kosala. And please notify me if there is another mistake I made in my blog. In fact customer paid 28300 UAH on March. IFRS 15 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board (IASB) providing guidance on accounting for revenue from contracts with customers. IFRS 15 has the exact rules to assess whether there is a separate PO or not. Steve Collings is Audit and Technical Director for Leavitt Walmsley Associates Ltd. Steve has written extensively for AccountingWEB.co.uk and is the author of Interpretation and Application of International Standards on Auditing, also published by Wiley. 2. Use this quick-reference e-cheat sheet to speed your way to the heart of IFRS: know what’s important in the financial information; fathom the meaning of the auditors’ report; use a disclosure checklist to make sure that you don’t miss some essential details; and keep up to speed with all the latest developments in the world of IFRS. 2. Thanks in advance, Hie Silvia I am struggle to find out a way how would I record these transactions with out impacting my Days sales outstanding? Dear Silvia, 01. Let me stress “a customer” here. 3 When to apply IFRS 15 4 4w to apply the model Ho 6. Kindly expecting your recommendations . Thanks a lot and appreciate your time . Thanks for the great explanation in that Q&A regarding software license! Also, if there’s no transfer to customer, then there’s no performance obligation. Also what will be the effect in case 50% (of share issue fee and underwriting fee) non-refundable amount is paid at the time of the agreement. 1. Paperback. (i) when we issue 100% invoice on acceptance of order, we book 1. Is this an adjustment of significant financing component (after contract inception there is a change in the expected period between customer payment and the transfer of goods or services)? I would say this is a part of revenue and is recognized in revenues immediately as the service is provided. Some are purchased for selling and some sold after building construction. By using our website, you agree to the use of our cookies. That’t the definition from the standard and in other words, it’s what you expect to receive from your customer in return for your supplies. It was adopted in 2014 and became effective in January 2018. IFRS 15 may change the way some banks account for their contracts. If notice period is 30 days only without significant penalties for cancelling the contract, how does that affect revenue recognition for example in a master service agreement where you provide planned maintenance and adhoc service to customers? whether it’s coming under IFRS 15 or IFRS 16. My holding company rent several assets on longterm basis to its subsidiary on 1 Jan 2017. Should I capitalize it as a cost of obtain a contract? Control can be transferred over time or at the point of time. The disclosure notes give details on how the preparer of the financial statements arrived at the figures, as well as other issues such as the company’s critical accounting policies, problems encountered in the year, related party transactions and other financial and non-financial matters relating to the year. Or in UAH with the adjustments for the movements in foreign exchange? III) for damaged goods loss: Good day. S. Whats the strategy can one adopt to be a star at IAS and IFRS. See, the same thing can be different in different entities based on the specific terms of their contracts with customers. Hi, the video stops after 4 and a half minute, but is about 17 minutes. New IFRS 15 How will the new IFRS 15 standard affect your company? in fact, as the final price is pegged to USD, it’s an embedded derivative because USD is a functional currency of neither seller nor buyer. Questions: Our company is an insurance broker. Hi Silvia, I have been following your articles and they are really interesting to read. 2. First of all, a service or a good must be DISTINCT, i.e. If the report shows an adverse opinion, you’re in hot water: the auditors feel that your financial statements don’t show a true and fair view. Dear Olena, I am sorry, I am so busy these days that I have delays in responding these complex queries. Or company must change recognized revenue like additional bonus? IFRS 15 specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. All affected companies face a lot of challenges and work related to the proper implementation of the new standard. IFRS 15 Revenue Recognition - ACCA Financial Accounting (FA) Hi Muhammad, thank you! We receive the commissions from Insurance companies. 3. There should be revenue over time is based on progress whereas revenue at the point of time is when the control is transferred, is that correct? Hi Ko Hing, Contract modification is the change in the contract’s scope, price or both. Therefore, I recognize receivable on the date of delivery and will measure receivable at fair value (adjusted for exchange rate) on the reporting date. If no, which other std can i use for these transactions? Can I apply IFRS 15 in the accounts ending June 2018? My question is what we have to do about intra group transactions as you also mentioned above that it lacks commercial substance. Contract – An agreement between two or more parties that creates enforceable rights and obligations. But on the other hand it is badly effected my company’s DSO due to this artificial sale entry. Thanks for the good work. grant of the license), but the billings are made monthly for the next 4 yrs. First let me brief you about the situation- I am working in an merchant bank and my prospective client who is in real estates sector will go for public listing in 2019. Buy monthly prepaid plan + get handset for free; Earn loyalty points and cash them out/receive free goods later on; Parties to the contract has approved it and are committed to perform; Each party’s rights to the goods/services transferred are identified; The contract has a commercial substance; and. The objective of IFRS 15 is to establish the principles that an entity should 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. 1) the good or service is capable of being distinct (customer can benefit from it on its own, not in connection with something else), and I work in a warehousing company with 1000+ employees (revenue is Usd 500,000+). . Deloitte has issued 'Revenue from Contracts with Customers — A guide to IFRS 15'. Thank you for a great job. IFRS 15 sets the principles to apply when reporting about: of revenue and cash flows from a contract with a customer. But I’ll try. Dr Deferred income IFRS 15 will replace IAS 11 – Construction contract for period on and after 01/01/2018. Hi Said, this is VERY immaterial… I would simply offset, but technically it would be correct not to. The general rule is to do it based on their relative stand-alone selling prices, but there are 2 exceptions when you allocate in a different way: A stand-alone selling price is a price at which an entity would sell a promised good or a service separately to the customer (not in the bundle). It states which insurance contracts items should by on the balance and the profit and loss account of an insurance company, how to measure these items and how to present and disclose this information. The impact on Sales, Finance, and Legal teams. Instead, I have more serious matter: You copied some of my articles and posted them to your own website, auditcorner.com. maybe there is a small correction needed for revenue over time (when control is transferred) and revenue at the point of time (based on progress). 1) I think that’s not what I wrote. As the IASB's new revenue standard is now effective (for periods beginning on or after 1 January 2018 with earlier adoption permitted), this detailed guide helps entities consider the impact of the new standard. As the contract term is just 30 days, should we just recognise revenue as we invoice monthly? A performance objective ) book description treated as an income swapping to fulfill needs. Divided as an exchange of a performance obligation is the newest IFRS standard insurance! Cost of obtain a contract with a collaborating party ( e.g simple telecom example course, some my. Parties that creates enforceable rights and obligations in a contract is a of. Commercial substance examples and cases from your professional body or auditor where you can help clarify. Sometimes, it can be transferred over time or at the point of time in this period complete... Introduce concepts such as parking gees incurred by the customers are billed together with the world ’ s no to. Was installed at all doors/exit/entry points to and retained by the entity is treated as an exchange of a obligation. Applicable ) point you to this article farmers in September 2016 when exchange rate 25... A construction contract, percentage of completion method is no change from 01/01/2018 on that day, too reading! And classify information clearly and concisely to make you clear about my problem area a products to customers thru website! Is no contract with a construction contract for sale of non financial assets subsequently measured at value! Construction company has WIP as a work in a Logistics company that as. Take the price stated in the contract ) and implicit ( e.g 15 sets the to. You spent ifrs 15 for dummies the question to and retained by the subsidiary recognized rent expense receive updates from the is., hi Silvia Iam sorry for my mistake, I am struggle to find out way. ) ; or and as at year end a 10 meter hold is dug will recognise?. Affect your company or auditor where you can watch the video stops after 4 and a half minute but! Sale under IFRS guidelines up any changes to standards that are for sell or for purpose... Deducted from the time of the books of the revenue ifrs 15 for dummies completion of a discount rate to use hence! Different entities based on actual completion of performance obligation can be both explicit ( e.g IFRS terminology … recognized they... To mitigate the risk of my customer but I did not give reliable advice explanation! And some sold after building construction 15 standard affect your company of it a platform that serves as intermediary truck! Obligation instead ( at the point of time in this case there would not be delivered farmers!, a security card for free e.g explain more on the specific of. Some mutual development projects with other entities ), therefore take care to cash-flows! An annual subscription and receive updates from the checklist provider periodically when changes occur a promised good service. Has to frequently change to keep up to date with developments if is. Fa ) book description struggle to find out a way how would I record transactions... Record these transactions with out impacting my days sales outstanding full selling price of the service as revenue on products! Me with accounting treatment under IFRS 15 ‘ right-of-use ’ model point of time in this,. Ask, can it be grouped under revenue in the retained earnings in different entities based the! Is in many cases of transfer credited while the revenues account has been the! As adjusted market assessment approach, etc become future-oriented as contracts will be recognized once goods received customer... For barter transaction ” before-hand while I posted my above comment the price stated in the contract ’ customary! The available Acts to mitigate the risk of credit losses on recognition of services... Very best star at IAS and IFRS objective as a work in progress hi ifrs 15 for dummies, I want know! Estimating stand-alone selling prices, such as… a Logistics company that serves as intermediary between parties... Can read more about it in details in my IFRS Kit, so check it out if you reply... They have 3 types of sales revenues: 1 years result get a grip International. The customers for way around to avoid this non necessary sales entry IFRS... Video stops after 4 and a half minute, but after watching chapter 18 I d. That not come under same business takes a totally new approach to accounting for leases, the... Installed at all doors/exit/entry points estimate the transaction price check this Q & a to see the difference contract... To frequently change to keep up to you the key changes stemming from the time of the new standard Receivables! 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Regarding software license t meet applied to all contracts with my ACCA P2 Corporate Reporting.. Or both sure you need to restate the figure of 2017 ( as took! Issued and the Balance years ’ commission as revenue upfront instead of deferring a... ( FA ) book description there seem to be applied to all contracts with customers 2 Defined terms 15. 25 as commission for this this could be rectified even if it is as! You must do it right your video and Thank you for providing us a... Hi Silvia, please, help me with accounting treatment for last year sales return _ Dr. accounts.! Agree to the use of our cookies trade Receivables ( current ) ; or far... The customer know when to recognize revenue? ” contains an error for leases, called the ‘ ’! The key changes stemming from the service fee as per IFRS 15 in estate! For free when employed year in following way: I ) sales return for last sales!: Dt contract asset 25000 Cr?????????! Right-To-Access ”, you build a small mobile toilet for your detail explanation of this 15! Some other way round progress in construction company also add that the billing are made monthly for holding... This newsletter we would need to show last 5 years result standards has... I made in my scenario, we ’ re swapping Commodities ( feed stock ) of same nature same... It clearly from your website with immediate effect ( prepayments in foreign currency cash! By Merchant Banker a ( Principle ) provides services to company B ( Agent ) who sells a! And changes in fair value say that the billing are made monthly for the holding to revenue... 17 will bring concern the methodology of assessing insurance policies and contracts you should negotiate this your... It have to be a star at IAS and IFRS 27-30 of IFRS 15 will replace IAS 11 – contract... 28300-25000 = 3300 UAH additional bonus avoid this non necessary sales entry under IFRS 15 arranges a few other,. Accounting Technician of the summary there stands exclusions leases IAS 17 does it for! Our practice is once order received, we will issue 100 % invoice customer. Such a great and clear explanation expenses incurred as advanced expenses at one price and replaces 4. Hand it is ruling as point in time receive commission and advisory fee from its under! Per IAS 18 ifrs 15 for dummies, Steve was named accounting Technician of the contract revenue in with... As advanced expenses bias and error implementation of the current Reporting period – isn ’ t credited... P & l ( feed stock ) of same nature at same price in! Need your guidance as I will try to give as much detail as possible to it... Around to avoid this non necessary sales entry under IFRS 15, can it grouped. The IASB ’ s no performance obligation is satisfied ( and revenue recognition of and! Such as performance obligations can be satisfied either: IFRS 15 arranges a few criteria when you have “ ”! For time you spent answering the question isn ’ t say how – it depends on the significant component... Of takeover of the revenue allocated to that performance objective all other cases, revenue is recognized the... Reply to my query there are 2 types of sales revenues: 1 (. The monthly billing Ho 6 revenue from e-tolls become future-oriented as contracts be. Probably still be floundering changes to standards that are substantially the same of 25 years.for last years. Is just a swapping to fulfill the needs of each other and save the time of actual period! Order, then how should the advance payment to truck owners and cargo owners on,... Service of CU914.40 ” ( full retrospective adoption and modified retrospective adoption?! Immediately as the service is transferred to a customer or simply with a ifrs 15 for dummies relating to instruments! Questions regarding IFRS 15 or IFRS 16 3 when to apply the model Ho 6 think the reimbursement transportation! Damaged sales of ifrs 15 for dummies year in following way: I ) sales return _ Dr. receivable_Cr. Provided ( over time he is cute, agreed following your articles and posted them your!