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Need help to understand example 5 of chapter 16.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Need help to understand example 5 of chapter 16.

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  • January 19, 2020 at 4:34 am #559047
    kripadhor96
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    please explain this exmple 5 of Revenue chapter IFRS 15

    Recognise revenue as each performance obligation is satisfied
    • Handset (goods) = at *
    • Calls and data (services) = over 12 months
    *at what should handset be recognized?

    January 19, 2020 at 4:36 am #559048
    kripadhor96
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    I want to know the journal entries also of the above question.

    January 27, 2020 at 8:45 pm #560002
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7207
    • ☆☆☆☆☆

    Hi,

    We would recognise a receivable (debit) at the point of sale of the handset and recognise revenue (credit).

    For the services we recognise a receivable (debit) and deferred revenue (credit) when we enter the contract and then we release this over the 12 months.

    Thanks

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