QUESTIONS? CALL: +381 (0)11 2636 636
  • LANGUAGES
    • Serbian Serbian
    • English English
  • Cookies
  • Privacy policy

ZSTAX

ZSTAX

Tax&Consulting

T +381 (0)11 2636 636
Email: office@zstax.rs

ZSTAX & consalting d.o.o.
Beograd, Маkеdоnskа 30, SRBIJA

Open in Google Maps
  • HOME
  • SERVICES
    • ACCOUNTING AND OTHER BUSINESS SERVICES
    • PAYROLL ACCOUNTING
    • TAX CONSULTING
    • BUSINESS SUPPORT SERVICES
    • SERVICES FOR INDIVIDUALS
    • OUTSOURCED CFO SERVICES
  • ABOUT US
    • GENERAL TERMS OF BUSINESS
  • CONTACT
  • NEWS & INSIGHTS
  • COVID-19
request forOFFER

IFRS 15 revenue from contracts with customers

Monday, 23. July 2018. by zstax

REASONS FOR ISSUING IFRS 15

Previous revenue recognition requirement in IFRS (including IAS 18 Revenue and IAS 11 Construction contracts) provided limited guidance and it was difficult to apply them to complex transactions.

Also, previous revenue recognition requirements in IFRS differed from those in US GAAP, and both sets fo requirements were in need of improvement.

IASB and FASB initiated a joint project to develop a common revenue standard for IFRS and US GAAP.

OBJECTIVES AND KEY PRINCIPLE

to establish principles that an entity shall apply to report useful information to users of financial statements about the nature amount timing and uncertainty of revenue arising from the contract with customers.

RECOGNITION AND MEASUREMENT

FIVE STEP APPROACH

STEP1: Identify the contract with a customer

The entity will apply the revenue standard to each contract with a customer when all of the following criteria are met:

  • parties have approved the contract and intend to perform respective obligations
  • each parties rights regarding the goods and services to be transferred can be identified
  • payment terms can be identified
  • affect future cash flows
  • it is probable that the entity will collect the consideration of which it will be entitled in exchange for goods or services transferred

STEP2: Identify the performance obligations in the contract

  • a good or service that is distinct
  • or a series of distinct goods and services that are substantially the same

STEP3: Determine the transaction price

  • REVENUE=expected consideration-sales taxes-consideration payable to customers/discounts
  • determining transaction price can be complex in case of variable consideration (included only if highly probable) and a significant financing component

STEP4: Allocate the transaction price to the performance obligations in the contract

  • it is done based on their relative standalone selling prices

STEP5: Recognize revenue when or as the entity satifsfies a performance obligation

  • revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer
  • control transfers to a customer over time (determing progress towards satisfaction of performance obligation by using input or output method) or at a point in time.
Read more
  • Published in Standards
No Comments

Search

Recent posts

  • Tax Update – January 2021.

  • Key amends of the Law on Tax Procedure and Tax Administration

  • New stance of the tax authority regarding outstanding debts of freelancers

Categories

  • Announcements
  • COVID-19
  • news
  • Rules & Regulations
  • Standards
  • Uncategorized @en

Archive

  • January 2021
  • December 2020
  • October 2020
  • April 2020
  • November 2019
  • October 2019
  • August 2019
  • April 2019
  • February 2019
  • November 2018
  • July 2018
  • March 2018
  • December 2017
  • October 2017
  • September 2017
  • June 2017
  • March 2017
  • February 2017
  • March 2016
  • GET SOCIAL
ZSTAX

© 2016 All rights reserved.

TOP