Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › IAS 18 Revenue
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- November 23, 2015 at 6:32 pm #284774
Hi, Mike..
Please let me know whether IAS 18 will be examined in Dec 2015 attempt or it is excluded from P2 syllabus…
or only IFRS 15 will be tested..
Please advise..
Thanks in advance
November 23, 2015 at 7:03 pm #284776My colleague, revenue will be ALWAYS be apart of financial reporting – know it!!! Especially as it relates to patient – serious you should be competent with IAS 18 revenue recognition.
November 23, 2015 at 8:22 pm #284787Hello Kashif,
Although IFRS15 will replace IAS18 on 1st January 2017 you should be aware of both I think as you can use the new IFRS from now.The new number 15 has the five step approach:
Contract
Obligations
Price
Allocations
Revenue recognitionUnder revenue recognition there are the ‘at’ and ‘over’ model as in the old IAS18 but more has been added to prevent creative accounting.
‘At’ is recognised at the point that risks and rewards and control transfers (and is the default model)
‘Over’ revenue is recognised over the period in accordance with completion. But this model is only permissible under three circumstances.
1) no alternative use
2) customer controlled asset (eg a maintence contract)
3) simultaneous consumption ( I like the idea of being at a concert but Graham Holt prefers gym membership as you consume its availability over the life of your membership)If I have got anything wrong in the above, please correct me as I will be taking my exam in December. 🙂
November 24, 2015 at 12:09 pm #284881thanks @lavinia69 its comprehensive answer..
November 24, 2015 at 12:31 pm #284888Hi @cardine revenue recognition under IAS 18 is based on risk & reward however under IFRS 15 it is based on control.. both are different concepts and IAS 18 excluded from P2 syllabus so i’m unable to understand your reply.. please clarify.. thanks
December 5, 2015 at 8:25 pm #287953ias18 is not listed as examinable:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/f7-p2-examdocs-2015-2016-int-uk.pdfifrs 15 is examinable
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