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IFRS 15

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.

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November 25, 2021 at 4:23 am #641562
davthev
Participant
- Topics: 7
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Hi sir, how do we account for free-of-charge items under IFRS 15? I know it’s a separate performance obligation but how does the double-entry works?
November 25, 2021 at 5:54 pm #641624
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3397
I pay 100 to supermarket for sausages.
I get a discount voucher for 4 free sausages next year.
When I pay the 100 the supermarket will:
Dr Cash 100
Cr Revenue 100/104×100
Cr Contract liability 4/104 x 100
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