IFRS 15

Question 1

What is a contract?

Answer 1

An agreement between two or more parties creates enforceable rights and obligations

Question 2

What is a customer?

Answer 2

Party that has contracted entity to obtain goods or services that are an output of entity’s ordinary activities in exchange for consideration

Question 3

What is income?

Answer 3

Increases in economic benefits during accounting period

Question 4

What is performance obligation?

Answer 4

A promise in a contract with a customer to transfer customr a distinct good or service

Question 5

What is revenue?

Answer 5

Income arising in course of entity’s ordinary activities

Question 6

What is transaction price?

Answer 6

Amonut of consideration which entity expects to be entitied in exchange for transferring goods or services to a customer

Question 7

What does transaction price exclude?

Answer 7

Amounts collected on behalf of third parties

Question 8

When is revenue recognised?

Answer 8

Transfer of control to customer from entity supplying goods or services