Revenue Recognition: PFRS 15

Question 1

Five Step Model Framework
CPTAR

Answer 1

1. Identify Contracts with customer
2. Identify the Performance obligation in the contract
3. Determine Transaction price
4. Allocate Transaction Price
5. Recognize revenue when the entity satifies a performance obligation

Question 2

An entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration (payment) to which the entity expects to be entitled in exchange for those goods or services.

This is the core principle of

Answer 2

IFRS/PFRS 15

Question 3

We consider TRANSFER/satisfied to have occured when the customer has ______ of the good or services

Answer 3

Control. The customer has direct influencebover the use of the goods or services

Question 4

PFRS 15
A contract can be explicit, implicit, oral or written

Answer 4

Yup

Question 5

PFRS15
Step 5
Company satisfies obligations EITHER:

Answer 5

1. At a point of time
2. Over a period of time (construction acctg)