CHAP4 : REVENUE RECOGNITION IFRSIS : → Apples to : RevenuefromContracts9.Anycontractwith acustomer - a party has contractedto w/ Customersobtaingoods / serves fromtheentry ( can bevwb%mvoke,aguoD 2.Alltonsof contracts , whetherwrittenor verbal thtornel or mph ) - , by customarybusiness praetre . F-✗ : Retailtales: Groceries , Clothing , Electron .rs RealEstate , tothere developer§ , telecommunication Long-TermConstruction Projectsleg . bridge ) Exclusions :bases , insurance ,then crlinstruments, certainnon-monetary exchange , Howdocompares Knowles and what amount of revenue to . ruo%¥s - 1. Identitythe Control 2.Identitytheperformance obligation - deliverygood / sense 3 Determinethetransactionpre ( agreedupon pre ) 4. Allocationthe transactionpre to performanceobligations 5.Recolonizeincome Maccordancewphperformance 1-Ata point in time Goods ) 2. Over a periodoftime Cservrce) Sunny → Earlier therecognitionof CF→ more uncertainty →Managersnurtured to providehighestimates of revenue ⊥IRRS IS: Revenuefrom contractswithcashiers ⊥5-step Process
STEP 9 : IDENTIFY THECONTRACT CRITERIA :A company accountsfora contractwith a customer according to IF5heare met : 1. Partiestothecontract haveapproved the contract to be 2. Companycanidentifyeach party'srightsregardinggoods / some transferred 3. The companycan identifythe parent terms (because of ) 4. Thecontract Leshormonalsubstance :contact →risk, tinny, amountofcompany 'sfuture Cfsare expected to ? huge 5. It:$ probablethatthecompany Wh wheel consideration G.e. $3m 㱺furgoods/ servicestransferred to customer
STEP 2 : IDENTIFYPERFORMANCE OBLIGATION Performanceobligations MvsTBEPISTINCT-a)Inherentlydebut : the obhzahnrs theoretically capable of# knit→ theoretically two distinct things (canthecustomer bereftfromgood / scare on its own ? ) - b)And , contextuallydistinct: obbgahn.rs separately rdentrarbk -- from other probes in the contract - Chet☐ thecustomerexpectingfromthe contract ?Did they enter intocarnet torÉne thegood/ some ? ) - It goods /sourcesareinterrelated , control at one Po e- Ex: Ingrbuband Labor mnskwmtmedboONE.BE:E→÷h f- ✗ : Borg and Rwhimlonsvlhycrwces ONE-POT (needtotherto useconsulting)
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