Revenue, costs and profit based on stage of completion recognition

This topic has 4 replies, 2 voices, and was last updated 4 years ago by ACCA_procrastinator.

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March 7, 2022 at 1:28 pm #650057

ACCA_procrastinator
Member

Hello!

In the revision lecture there was a sentence that we should recognise revenue, costs and profit based on stage of completion.
I couldn`t find anything about such recognition of costs in IFRS 15. Could you please, advice the point in IFRS 15?

Regards

March 8, 2022 at 9:18 am #650192

P2-D2
Keymaster

Hi,

IFRS 15 now refers to it specifically as over time as opposed to the stage of completion.

Thanks

March 10, 2022 at 1:16 pm #650855

ACCA_procrastinator
Member

Thank you for clarification!

In question Haverford, we took to PL both the amounts of COS to date and COS to complete in proportion of 40% completion.
While if IFRS 15 refers to the recognition of costs over time, should we only recognise 1900 cost to complete?

March 12, 2022 at 9:01 am #651138

P2-D2
Keymaster

Hi,

The % given is reflective of measuring the amounts over time based on what has been done by the business.

Thanks

March 17, 2022 at 6:33 am #651400

ACCA_procrastinator
Member

Thank you! It is much clearer now
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