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i want to ask that whether IAS 11 accounting is still applicable and IAS 18 is merged under IFRS 15.
Both IAS 11 and IAS 18 no longer exist
Both have been soaked up by IFRS 15
OK?
But in study notes the chapter 13 named calculation of construction contract profit what is link of this topic with IFRS 15 as IAS 11 construction contract has not excluded.?
I have read the article from ACCA’s tecnical articles.IFRS 15 replaces the following standards and interpretations:
IAS 11, Construction Contracts
IAS 18, Revenue
IFRIC 13, Customer Loyalty Programmes
IFRIC 15, Agreements for the Construction of Real Estate
IFRIC 18, Transfer of Assets from Customers
SIC-31, Revenue – Barter Transactions Involving Advertising Services“One effect of this for the ACCA exams is that CONSTRUCTION CONTRACT are no longer an excluded topic in P2.”
and one more query that IFRS 15 also provides guidance to assist entities in applying the model to lisences,warranties,rights of return,pricipal versus agent consideration.
Please tell me that whether this smaller topic also be examinable under IFRS 15 in F7 exam.
This is the relevant extract from the F7 syllabus:
The link is:
a) Explain and apply the principles of recognition of revenue:
(i) Identification of contracts
(ii) Identification of performance obligations
(iii) Determination of transaction price
(iv) Allocation of the price to performance obligations
(v) Recognition of revenuewhen/as performance obligations are satisfiedb) Explain and apply the criteria for recognising revenue generated from contracts where performance obligations are satisfied over time or at a point in time
c) Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation
d) Explain and apply the criteria for the recognition of contract costs
e) Apply the principles of recognition of revenue, and specifically account for the following types of transaction:
i) principal versus agent
ii) repurchase agreements
iii) bill and hold arrangements
iv) consignmentsf) Prepare financial statement extracts for contracts where performance obligations are satisfied over time
I think that this answers your questions but, if you need to, post again
part (e) and part (f) does not include in the course notes provded at opentution F7
If the course notes had ever had the ambition of completeness, we would have called them a study text and expanded them to >400 pages of close typed narrative
So far as you and your exam is concerned, they should provide a substantial base line from which you may build if you choose to but, if you choose not to, no problem, they should still be ample for you to pass F7 comfortably
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