FR? revision kit

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February 28, 2020 at 5:10 pm #563472
jasmisuhail
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$1m in relation to a sale to a new customer on 31 dec 20X1. The control passed to the customer on 31 dec 20X1. The $1 million is payable on 31 dec 20X3. Interest rates are 10%.

What is the correct treatment for this activity? And which standard is it related to?
February 29, 2020 at 3:30 pm #563575
P2-D2
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It is treated under IFRS 15 as it is in relation to revenue. We record the amount at fair value (discount to PV) and then record interest income.

Thanks
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