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IFRS 15 – verge (b) june 13

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IFRS 15 – verge (b) june 13

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
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  • August 4, 2017 at 12:16 pm #400378
    Avatarmansoor
    Participant
    • Topics: 423
    • Replies: 541
    • ☆☆☆☆

    Good afternoon Sir!!

    in this part, the govt will not pay till any amount, apart from the 1m advance, till the contract ends.

    this caused me to think that this shd be treated as a performance obligation provided AT a point in time rather than over time.

    the Kaplan text has a similar example (Crawford) in which the contract is treated as AT a point in time.

    am not sure how to decide.

    can u please shed some light?

    regards

    August 4, 2017 at 1:00 pm #400388
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    If its not payable until that point in time, then the performance obligation is only completed as at that pointing time so recognition of the revenue must wait until that point in time

    Ok?

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  • The topic ‘IFRS 15 – verge (b) june 13’ is closed to new replies.

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