M3 RR - ConCon Steps

Question 1

Core principle under PFRS 15:

Answer 1

RECOGNIZE REVENUE
✔ to depict the transfer of
✔ promised goods/services to customers performancr obligation
✔ in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those g/s. transaction price

Question 2

Application of Revenue Recognition Principles (PFRS 15)

Answer 2

Step 1: Identify the contract with the customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations
Step 5: Recognize revenue when (or as) a performance obligation is satisfied

Question 3

When is a contract with customer accounted?

Answer 3

✔ the contracting parties have approved and are committed to perform
✔ each rights are identifiable
✔ payment terms are identifiable
✔ contract has commercial substance