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Sir if an entity receives shares worth 4 million dollars now but it will satisfy the performance obligation 2years later (at a point in time) then at what value will revenue be recognised 2yrs later? At 4million dollar or at FV of shares then (2yrs later)?
In the interim period I understand that IFRS 9 will be applied, but little bit confused with respect to the reasoning and exact value at which REVENUE should be recognised 2yrs later.
Thank you in advance!
You give me shares now and, in return, I will perform services for you in 2 years time.
Now – Dr Fin asset Cr Contract liability 4m
In 2 years – Dr contract liability Cr Revenue 4mAnd sir if the performance obligation was satisfied over time then how do we recognise revue over 2year period, where consideration is shares issue of purchasing entity like above? 4m/2=$2m?
Both of the 2 years :
Dr. Contract liability 2m
Cr. Revue 2mRight?
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