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i need someone to explain IFRS15 for me

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November 6th 2015 AN ACCA USER 120 Points

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November 9th 2015 AN ACCA USER 480 Points
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IFRS-15 has 5 pillars.
1. Identify contract
2. Identify Performance Obligations
3. Identify Transaction price
4. Allocate transaction price
5. Recognize revenue on the basis of transaction price
1. We see the legal form of contract.
2. There can be more than one performance obligations in a contract. For Example: An entity selling goods with repairs services.
3. Identify the transaction price at which goods or services are being sold or delivered.
4. This point eliminates the concept of IAS-11 Construction Contracts which says to recognize revenue over the life of the contract. IFRS-15 says:
. 1. Recognize the revenue over the life of the contract only when construction services are being delivered to a single owner i.e: Building a house for an owner.
. 2. Recognize revenue only when the property under construction is transferred to their owners i.e: Building number of flats for number of people, recognize revenue when the flats have been completely built and in actual transferred to the buyers.
5. After all the above 4 conditions have been met finally recognize revenue on the basis of transaction price.

November 10th 2015 AN ACCA USER 940 Points