MindMap Gallery ACCAF7 IFRS15 Revenue
ACCAF7 knowledge points are about IFRS15 income, focusing on the five-step method and construction contracts.
Edited at 2021-01-05 18:59:50This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
IFRS15 Revenue
creative accounting
look as low risk as possible
two main ways
profit smoothing, where profits from good years are held back and released in bad years to make the results look consistent year on year
reducing gearing, disguise debt on the statement of financial position
IAS1 requires companies to show economic substance rather than legal form
recognition
five steps
identify the contracts with a customer
a contract is an agreement between two or more parties that creates enforceable rights and obligations, and the contract has commercial substance
identify the performance obligations in the contract
a contract includes promises to transfer goods or services to a customer. if those goods or services are distinct, the promises are performance obligations and are accounted for separately
determine the transaction price
include
consideration: fixed amount, variable amount(estmate)
the effect of time value of money discount
FV of non-cash consideration
allocate the transaction price to the performance obligations in the contract
on the basis of the relatives stand-alone selling prices of each distinct good or service promised in the contract
a company would recognize revenue when it satisfies a performance obligation by transferring a promised good or service to a customer
at a point time
over time
substance of transactions
principal vs agent
consignment arrangement
dealer do not recognize stock
sale and repurchase agreements
recognize as sale/liability(secured loan)
sale and leaseback
bill and hold sales
Determine and recognize revenue based on whether the right to use is transferred.
factoring of receivables
construction contracts
contract revenue
initial amount agreed
variations in contract work and claims
claims amount
incentive payments
penalties(reduce from contract revenue)
contract costs
direct costs
site labor and supervision
materials
plant&equipment depreciation
moving costs
hire charges
design
attributable costs
insurance
stage of completion of contract
input method
output method
recognize
profit: recognize revenue and costs according to stage of completion
loss: recognize total loss immediately