IFSR 15

Question 1

How does ifrs 15 define revenue?

Answer 1

Income arising from e’ ord actvt

Question 2

What is SCD formula? (steps)

Answer 2

-steps (1-5)
-criteria
-decision

finish with step 5

Question 3

what are the criteria for step 1? AP^2 RS

Answer 3

Approved
payment = probable
right to both parties
SOF

Question 4

what are the criteria for step 2? PO

Answer 4

How many PO?
Distinct (check buyer ad seller perspective) // benefit separately or tgt // identifiable or deliver at different POT

Question 5

what are the criteria for step 3? (5 recog price)

Answer 5

1. fixed price (cash sale)
2. variable price (recog to the extent it is probable that a significant reversal of cummul revenue already recog will not occur)
3. TVOM (pay in advance/co take loan from cust or arrears/ co give loan to cust)
4. non-cash consd recv from customer (meas @ FV) - IIE/Non-finl/Finl
5. cash consd paid to customer (bribe/discount/vouchers)

Question 6

what is criteria for step 4? (allocation)

Answer 6

allocate price to PO based on SASP

Question 7

what are criteria for step 5?

Answer 7

recog of revenue (satisfy PO/ deliver goods/ transfer control)

satisfy PO:
POT - sale of goods (e’ has control/ developer needs to 100% complete and deliver & trsf control)
POD - cust will recv and consume simultaneously

if construction company: CHECK for POD
-cust has control
-contractor enhance asset
-no alternative use
-enforceable right to recv payment

Question 8

How to calculate percentage of completion using input method?

Answer 8

cost of work done to date / TEC (cost to date + future est cost to complete) x 100

Question 9

How to calculate percentage of completion using output method?

Answer 9

value of work done (contract price x %) / contract price x 100

Question 10

what is SOF in a combi contract?

Answer 10

whether in substance is 1 contract or multiple (substance vs legal)

SINGLE / one contract if met few criteria:
-negotiate as one package with single commercial obj
-amount of consd in one contract depends on price or perf on the other contract
-g/s in each contract are a single PO

Question 11

what are the types of variation?

Answer 11

modification (clause within contract) and reassessment (no clause found)

Question 12

how to account for modification of contract (identification)

Answer 12

check!
-distinct/ or single PO
-reflect SASP