Module 23 - Revenue From Contracts With Customers

Question 1

Step 1

Answer 1

Identify the contract with a customer

Question 2

Step 2

Answer 2

Identify the performance obligations in the contract

Question 3

Step 3

Answer 3

Determine the transaction price

Question 4

Step 4

Answer 4

Allocate the transaction price to the performance obligations in the contract

Question 5

Step 5

Answer 5

Recognise revenue when/ as the entity satisfies a performance obligation

Question 6

Refund liability double entry

Answer 6

DR Bank/ Receivables
CR SPL - Revenue
CR Refund liability

Question 7

Significant financing component

Answer 7

Buy now, pay later

Adjust for the time value of money

Question 8

If goods/ services exchanged, must

Answer 8

Have different risks and cash flows in order for there to be commercial substance

Question 9

Loss making contracts

Answer 9

Meets the definition of an onerous contract - under IAS 37