International Financial Reporting Standards summary
50 vues 7 fois vendu
Cours
6314M0400Y
Établissement
Universiteit Van Amsterdam (UvA)
Providing a summary of the examinable subjects of International Financial Reporting Standards (excluding Inventory and Consolidation), but includes:
- Revenue recognition (IFRS 15)
- PPE (IAS 16)
- Intangible assets (IAS 38)
- Impairment (IAS 36)
- Business combinations (IFRS 3)
- Income tax ...
Income: increases in economic benefits in the form of inflows or enhancements of assets, or
decrease of liabilities that result in decreases in equity.
— Revenue: Gross inflow of economic benefits arising in the course of ordinary activities.
— Gains: Other items that meet the definition of income and may or may not arrive in the course of
ordinary activities.
5 Step process for revenue recognition:
1. Identify the contract with customers
There is a contract when:
The contract is approved and parties are committed to their obligations
The entity can identify each party’s rights
The entity can identify each party’s payment terms
The contract has commercial substance
Collection of consideration is probable
If the contract does not meet the 5 criteria, but the entity received consideration from the
customer, revenue recognition is only possible when:
The entity has completed performing all of its obligations and has received all of the
consideration promised by the customer.
The contract has been terminated.
Combining individual contracts when:
— The contracts are negotiated as a package
— Price in one contract is impacted by the price/performance of the other contract
— Some of the goods/services form a single performance obligation
2. Identify the performance obligation
Separate performance obligation when meeting one of the criteria:
— The goods/services are capable of being distinct. (separate selling is possible)
— Goods/services are distinct when considered in the context of the entire contract:
- There is no integration (one is used for an input to generate the output of the other)
- Not significantly modify/customize other goods/services
- Not highly dependent on other goods/services
3. Determine the transaction price
Variable components of the price are: discounts, rebates, refunds, price concessions, incentives,
bonus, penalties, etc. If the company is dependent on the occurrence of future events, the price is
variable. There are 2 methods to estimate this:
,— Expected value
— Most likely amount
Example: variable consideration
Entity A provides transportation to theme park customers to and from accommodation in the area
under a 1 year agreement. It is required to provide scheduled transportation throughout the year for
a fixed fee of $400 000 annually. Entity A also is entitled to performance bonuses for on-time
performance and average customer wait times. Its performance may yield a bonus from $0 to $600
000 under the contract. Based on its history with the theme park, customer travel patterns and its
current expectations, Entity A estimates the probabilities for different amounts of bonus within the
range as follows:
$0 * 30%
$200.000 * 30%
$400.000 * 35%
$600.000 * 5%
= $230.000
OR include only $200.000 in transaction price.
Expected value approach: Probability weighting the possible outcomes of a contract. May better
predict when the entity has a large number of contract with similar characteristic.
Most likely amount approach: Select the amount that is most likely to be received considering the
range of possible outcomes. May be better to use when there are limited number of possible
outcomes expected.
4. Allocate the transaction price
Standalone selling prices: price as which a good/service is sold separately by the entity.
Example: stand-alone selling price method
Company A sells a software package to Company B, together with a service contract including one in-
house training at B and access to Company A’s database for a 2-year period. Customer pays $3,000
for the bundle (beginning period 1). The training takes place at the end of period 1. Company A
assumes that - if it were to charge separately for every component - the selling prices were as
follows:
(1) Software Package € 200
(2) In-house Training € 2,600
(3) Access to database € 800
,What are the stand-alone selling prices?
What are the journal entries for the transaction?
5. Satisfaction of performance obligation
Satisfied over time when meeting one of the criteria:
— Benefits provided by the entity’s performance are simultaneously received and consumed.
— The customer controls an asset that is being created or enhanced by the entity’s performance.
, — The asset created has no alternative use and there is an enforceable right to payment
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur lotjeclardij. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €5,99. Vous n'êtes lié à rien après votre achat.
