Ifrs 15

Hi sir

Can u plz explain these in simple way w example plz

1) Entities will recognise an asset when costs incurred to fulfil a contract meet certain criteria, one of which is that the costs are expected to be recovered. For costs to meet the ‘expected to be recovered’ criterion, they need to be either explicitly reimbursable under the contract or reflected through the pricing of the contract and recoverable through the margin.

2) penalty payable should be estimated and deducted from the transaction price if it is highly probable that a significant reversal in the amount of revenue recognised will not occur when the uncertainty is resolved.

Thanks v much