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Revenue recognition for a travel agency

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.

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April 19, 2021 at 11:03 pm #618252
srklodhi96
Member
- Topics: 12
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Hello Sir,
My question to you is that when would a travel agency recognize its revenue?
When the customer books his tickets for a particular trip or when the trip has been completed by him.
As per IFRS 15, when does the performance obligation discharges under this case?
April 20, 2021 at 1:00 pm #618295
Stephen Widberg
Keymaster
- Topics: 15
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Gut feeling – the service is to find a customer for the airline – if that is when you are entitled to the commission. My role is to find the customer not fly the plane.
May be reduced if, for example, there are cancellation rights which would impact on our commission.
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