Revenue, costs and profit based on stage of completion recognition

AACCA_procrastinator4y ago

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

P2-D2Tutor4y ago#1

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

AACCA_procrastinator4y ago#2

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?

P2-D2Tutor4y ago#3

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

AACCA_procrastinator4y ago#4

Thank you! It is much clearer now

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