A good or service is distinguished by the fact that (a) the customer can benefit from himself (or with other readily available resources) and (c) that the entity`s obligation to transfer them separately is recognizable separately from its other contractual obligations. An obligation cannot be identified separately if the company maintains an important service for the integration of goods or services, if one product or service significantly alters the other, and if the products are highly interdependent and integrated. The transport costs to be reimbursed by the customer are charged at the same time as the agreed transportation costs. And transportation support revenues are returned to and withheld by customers before the fees are reimbursed. In this case, could transportation costs be deducted from the service charge if the revenues are accounted for for THE IFRS registration? When a quantity of services or services is transferred to a client before its expiry, it is accounted for as a contractual investment. IFRS 9 applies to accounting for the impairment of contractual assets. An unconditional payment fee is recorded as a claim recorded under IFRS 9 according to the initial accounting. Hi Sylvia Im is grappling with contracts that do not comply with the letter 9th of Ifrs 15; Assessing clients` skills and intentions. We are a national road authority that derives revenue from electronic tolls. There are writing agreements with customers, but road users who use toll roads should pay in relation to the law and non-payment is a crime within the meaning of the law. However, the public has objected to the etolling of roads and 80% of customers do not pay at all for the last 3 years.
I can say that I have contracts with clients (capacity and intent is difficult to evaluate here). If not, what other std can I use for these transactions? Can I use the available laws to reduce the risk of credit loss when recording revenue and account for revenue? We do not choose our customers as road users, so the creditworthiness of customers is not feasible. An entity excludes the effect of the present value of the money on the counterparty when a contract has a significant financing element. The factor affecting such an assessment includes the difference between the contract price and the cash sale price of goods or services, the period between delivery and payment, the prevailing interest rate, etc. A company may decide not to adapt to a significant financing element if the time frame is one year or less. Dear Amanda, yes, it can be as you wrote it. But it can also be the other way around. IFRS 15 contains specific rules for determining whether or not there is a separate OP. First, a service or service must be DISTINCT, i.e. 1) the good or service may be different (the customer may benefit from it alone, not in relation to anything else) and 2) the goods or services are separate within the framework of the contract (the commitment is recognizable separately). It is up to you to judge your specific situation. See that the same thing may be different in different entities based on the specific terms of their contracts with customers.
I recommend reading more guidelines in paragraphs 27 to 30 of IFRS 15. I hope it helps. S. – The customer can benefit from the goods or service, either alone or with other resources that are readily available, if they were not different, they must be aggregated until the company identifies the minimum level of different goods or services. Dear Silvia, How does Ifrs 15 apply to work in progress in construction companies? Great explanation, easy to understand – remember the terminology ifrs …. Great work mam keep you up. A treaty amendment relates to approved changes to the scope. It is considered a separate contract where: (a) it increases the scope of the contract because of the addition of different goods and services and (b) the consideration is increased by an amount representing the exclusive sale price of the additional goods or services. Suppose X Ltd sells goods to Y Ltd for the amount of Rs.