Adjusted market assessment – Annual Reporting

IFRS 15 the new revenue model – The best read

05/03/2020 by 75385885

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 new revenue model The revenue model applies to all contracts with customers except leases, insurance contracts, financial instruments, guarantees and certain non-monetary exchanges. The sale of non-monetary financial assets, such as property, plant and equipment, real estate or intangible assets will also be subject to some of the requirements of IFRS 15. A contract with a customer may be partially within the scope of IFRS … Read more

Stand-alone selling price

01/03/202001/03/2020 by 75385885

The best evidence of standalone selling price is the price that the entity charges for the good or service in a separate transaction with a customer. However, in many cases goods or services are sold exclusively as a package with other goods or services rather than on an individual basis (e.g. nonrenewable customer support).

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

14/02/202020/05/2019 by 75385885

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 15 requires (with some exceptions, as discussed below) an entity to allocate the transaction price to the performance obligations in proportion to their stand-alone selling prices (i.e., on a relative stand-alone selling price basis). Allocate the transaction price to POs To allocate the transaction price on a relative stand-alone selling price basis, an entity must first determine the stand-alone selling price (i.e., the price at … Read more

Transaction price allocation

05/12/201923/06/2019 by 75385885

Transaction price allocation – Once the performance obligations have been identified and the transaction price has been determined, the entity is required to allocate the transaction price to the performance obligations, generally in proportion to their stand-alone selling prices (i.e., on a relative stand-alone selling price basis), with two exceptions. Firstly, IFRS 15 requires an entity to allocate variable consideration to one or more, but not all, performance obligations in some situations. Secondly, IFRS 15 contemplates the allocation of any discount in an arrangement to one or more, but not all, performance obligations, if specific criteria are met. The transaction price is not reallocated to reflect changes in stand-alone selling prices after contract inception. The stand-alone selling price is the … Read more