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IFRS 15 Example 6 – Performance Obligations over time.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IFRS 15 Example 6 – Performance Obligations over time.

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  • February 6, 2019 at 6:14 am #504295
    jonathanline47
    Member
    • Topics: 4
    • Replies: 12
    • ☆

    Hi,

    In this question, why are we recognising the total loss of the contract ($5m) against 45% revenue?

    February 10, 2019 at 9:43 pm #504661
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7082
    • ☆☆☆☆☆

    Hi,

    If we have a loss making contract then we need to be prudent and recognise the full loss immediately. To do so we will recognise the revenue on the stage of completion and then the costs will be a balancing figure.

    Thanks

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