First transition to IFRS

Dear Tutor, In the Karplan text book chapter 16 Test your understanding 1-Nat Their first financial statements produced in accordance with I FRS Standards are for the year ended December 20X5 and these will include comparative information for the previous financial year. Its previous GAAP financial statements are for the years ended 31 December 20X3 and 20X4. The directors are unsure about the following issues: (i) Nat received $5 million in advance orders for a new product on 31 December 20X3. These products were not dispatched until 20X4. In line with its previous GAAP, this $5m was recognised as revenue. The answer: The sale does not meet the revenue recognition criteria per IFRS 15 Revenue from Contracts with Customers because control of the asset has not transferred from the seller to the customer. In the opening IFRS statement of financial position as at 1 January 20X4, a contract liability should be recognised. The $5 million loss on recognition of this liability will be accounted for in retained earnings. I don't understand why loss $5million will be accounted for in RE. how do it in double entry? previous correction: Dr:Sales $5million Cr: Liability $5 million. now how to do this loss $5 million? many thanks