- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
P2-D2.
P2-D2.-
Posts
-
zony123
- Topics: 27
- Replies: 10
- ☆
Sir can you please help me in these questions..
Sir if control is transfered to consignee (dealer) so why is it consignment arrangement still.. And can we account for it .?.
Sir is accounting and journal entries for consignment examniable in FR paper?
Sir how can we identify that the control is transferred to consginee?
Sir please help me in this regard.
Thanks in advance
P2-D2
- Topics: 4
- Replies: 6317
- ☆☆☆☆☆
Hi,
It is part of IFRS 15 so technically could be in the exam. If control has transferred then we would recognise the sale. To do this it would just be a standard sale where we recognise the revenue and record the receivable.
It is more likely to be seen whereby we have the control and so therefore should not recognise the sale. We would therefore record the proceeds as a loan and continue to recognise the inventory.
Thanks
zony123
P2-D2- You must be logged in to reply to this topic.