Rev Recognition

Question 1

Main criterion for Rev recognition in Contracts (IFRS)

Answer 1

1) identify contract 2) Identify Performance Obligation, 3) Determine Transaction Price, 4) Allocate Transaction Price to Performance Obligation, 5) Recognize revenue in accordance with performance

Question 2

How to identify a contract (IFRS)

Answer 2

1) both parties approved the contract, 2) Point of transfer of goods can be identified 3) Payment terms are identified, 4) contract has commercial substance, 5) collection of payment is probable

Question 3

Conditions for goods to be considered distinct (IFRS)

Answer 3

1) The buyer can benefit from the goods on its own, 2) The good is separately identified in the contract

Question 4

Revenue recognition criteria (ASPE)

Answer 4

• significant risks and rewards of ownership or effective control over the goods sold;
• The amount of revenue can be measured reliably; and
• Ultimate collection of consideration is reasonably assured