9. Further Accounting Standards

Question 1

What are the stages for recognising revenue?

Answer 1

1. Identify a contract with the customer
2. Identify the separate performance obligations
3. Determine the transaction price
4. Allocate the transaction price
5. Recognise revenue as each performance obligation is met

Question 2

When is a contract inside the scope of IFRS15?

Answer 2

If all the following can be satisfied:

• Both parties approved contract and are committed to carrying it out
• the right and payment terms can be identified
• contacts has commercial substance
• It is probably the entity will collect the consideration to which it is entitled

Question 3

What happens to events that occur after the reporting period?

Answer 3

Adjustments must be made if the event existed at year end, if they occurred after year end, they are non-adjusting events.