IFRS 15 Revenue from contracts with customers
Course Description
Every profit oriented organisation wants to maximise its profit, thus revenue. The core principle of IFRS 15 standard requires an entity to recognise revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for transferring those goods or services to the customer.
A question arises, how can we define the consideration that an entity expects to be entitled to in exchange for goods? How to recognise revenue if within one contract we sell one good and also a service for a total price of CU 1,000 for example?
What amount shall be recognised as revenue if customer can claim refund for 3 months after delivery?
There are many interesting questions related to revenue recognition. IFRS 15 standard does not distinguish between sales of goods, services or construction contracts. It defines transactions based on performance obligations satisfied over time versus point in time. This course explains the scope of IFRS 15 standard, after which the 5 step approach is explained in detail using practical examples and interim tests to enhance understanding.
Course Structure
This eLearn is split into the following modules:
Introduction: scope
The Five-step approach:
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- decide if the item of income is in the scope of the IFRS 15 standard
- understand IFRS 15 standard’s 5 step approach
- identify the contract with the customer, including situations of contract combination and contract modification
- determine the transaction price by understanding the complexities including the effects of variable consideration, significant financing component, non-cash consideration, variable consideration, etc.
- allocate the transaction price
- define the revenue recognition pattern at a point in time or over time
Course Structure
This eLearn is split into the following modules:
Introduction: scope
The Five-step approach:
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- decide if the item of income is in the scope of the IFRS 15 standard
- understand IFRS 15 standard’s 5 step approach
- identify the contract with the customer, including situations of contract combination and contract modification
- determine the transaction price by understanding the complexities including the effects of variable consideration, significant financing component, non-cash consideration, variable consideration, etc.
- allocate the transaction price
- define the revenue recognition pattern at a point in time or over time
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