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IFRS 15 is the revenue from an agreement with the customer it was introduced by the International Accounting Standards Board to provide one revenue model for all customers to improve dealing with industries and across the industries. IFRS 15 is a basic contract to customers to transfer goods or services-public, to private and non-profit entities. If you want to study IFRS training online (IFRS 15 or core principle of IFRS 15) then you should go with contetra pvt ltd. <br>Contetra will not teach only exam oriented but they give in-depth practical knowledge, they give study material, and also take
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What Action do you Need to Take? Conclusion What does this Mean for You? How will it Impact You? Introduction
What does this mean for you? • IFRS 15 sets out a single framework for revenue recognition. Its core principle is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services • This might sound as though your sales will be exactly as they are now, but in fact the new standard might change the amount of revenue you recognise, which period it is booked into and the classification of the income by type. This is particularly relevant where a transaction is paid for over time, because the time value of money is now accounted for not only when you provide a significant financing benefit to a customer but also when you receive such a benefit (by recognising an interest expense). • Finally, the timing of recognition of revenue might change, since the sale point will be the moment that control passes to the customer rather than when the significant risks and rewards of ownership have transferred.
How will it Impact You? • Entities may wish to reconsider their current contract terms and business practice. • The timing of revenue recognition may change even when there is only one performance obligation, particularly for those involved in providing services. Entities will need to determine whether revenue should be recognised over time or at a point in time. • The amount of revenue recognised may change if an entity receives a significant financing benefit. • Existing accounting software may need to be adapted or replaced to ensure it is capable of capturing data to deal with the new accounting requirements; particularly for use in making estimates, establishing standalone selling prices, or supporting the extensive disclosure requirements.
What Action do you need to Take? • Step 1: identify the contract(s) with a customerStep 2: identify the performance obligations in the contractStep 3: determine the transaction priceStep 4: allocate the transaction price to the performance obligations in the contractStep 5: recognise revenue when (or as) the entity satisfies a performance obligation
Conclusion • IFRS 15 is the revenue from an agreement with the customer it was introduced by the International Accounting Standards Board to provide one revenue model for all customers to improve dealing with industries and across the industries. IFRS 15 is a basic contract to customers to transfer goods or services-public, to private and non-profit entities. If you want to study IFRS training online (IFRS 15 or core principle of IFRS 15) then you should go with contetrapvt ltd. • Contetra will not teach only exam oriented but they give in-depth practical knowledge, they give study material, and also take two mock exams. If you are interested IFRS online certification course then visit the: https://contetra.com/diploma-in-ifrs-training/
