What is IFRS 15 for dummies?
IFRS 15 establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.
What is the core principle of IFRS 15?
The core principle of IFRS 15 is that revenue is recognised when the goods or services are transferred to the customer, at the transaction price.
What are the five steps of IFRS 15?
Identify separate performance obligations. Determine the transaction price. Allocate transaction price to performance obligations. Recognise revenue when each performance obligation is satisfied.
Which of the following is the main objective of IFRS 15?
The objective of IFRS 15 is to establish the 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.
What is a material right under IFRS 15?
Material Rights is an option given to a customer to acquire additional goods or services free of charge or at a discount.
What material right means?
A material right is an option to purchase additional goods or services at a price that is less than what the customer would have paid if they had not entered into the contract.
What is IFRS 15 and what does it mean for You?
IFRS 15 also contains guidance on accounting for certain contract costs, payments to customers, and a cohesive set of disclosure requirements for revenue and associated contract balances. How will it impact?
What are the accounting requirements for revenue under IFRS?
Accounting requirements for revenue. The core principle of IFRS 15 is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
What is a contract liability under IFRS 15?
[IFRS 15:105] A contract liability is presented in the statement of financial position where a customer has paid an amount of consideration prior to the entity performing by transferring the related good or service to the customer. [IFRS 15:106]
Can an entity apply IFRS 15 earlier than 1 January 2018?
Earlier application is permitted. An entity that chooses to apply IFRS 15 earlier than 1 January 2018 should disclose this fact in its relevant financial statements. [IFRS 15:C1] When first applying IFRS 15, entities should apply the standard in full for the current period, including retrospective…