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IFRS 15 financing component

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 15 financing component

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • May 25, 2021 at 7:12 am #621683
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir as per IFRS 15 the financing component will ALWAYS reflect a discount rate at which the borrower borrows money?

    and if yes, then why can’t the discount rate reflect the rate at which supplier borrows money from customers, like when they ask for upfront payment by customer?

    May 25, 2021 at 9:56 am #621725
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    You will be given a single interest rate which you should use.

    Please try not to make the exam more complicated than it is!

    There is a discussion at:

    https://ifrscommunity.com/knowledge-base/ifrs-15-transaction-price/#link-significant-financing-component

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