IFRS 15

This topic has 3 replies, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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September 3, 2020 at 5:45 am #583194
toushiga
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If the contract fail the step 1 of the 5 step model, how the entity should accounted for the contract for the amount received from the customer? and the timing of recognition based on cash received basis?
September 3, 2020 at 1:29 pm #583267
Stephen Widberg
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If there is no contract there will be no revenue recognition.
I am not clear what the rest of your question means.
September 4, 2020 at 8:45 am #583348
toushiga
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Then how do we accounted for the amount received for customer for the service provided? Dr cash and CR other income? and the accounted for this transaction is when the cash received from customer rather than in the point when the entity provide/ satisfy their performance obligation like IFRS 15?
September 4, 2020 at 11:26 am #583408
Stephen Widberg
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If the service has not yet been provided we would credit deferred income or contract liability.
Your original question was about step one. If there is no contract then no one will be giving us any money at all so nothing will happen.
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