Dear sir
Hope you can clarify few things for me in terms of revenue recognition.
How do we treat sale and repurchase agreement, agency sale, factor sale etc now?
I am just doing question 170 and 171 from kaplan revision kit (Quincy and Atlas) and wondering if the treatment will be different now to whats in the answers?
Regards
Ask the Tutor ACCA FR
Revenue recognition
"sale and repurchase, agency sale, factor sale etc" - no change - they're not sales so they're not revenue!
I don't know the questions and I don't have ANY Kaplan material! (Nor do I have any BPP material)
The real difference brought about by IFRS 15 is the recognition that a contract to provide goods and after-sales services is in fact two separate contracts and the after-sales service element needs to be time apportioned over the after-sales service contract period
I doubt whether those Kaplan questions that you mentioned will be affected - unless they incorporated such an after-sales service element
Oh sorry Sir I thought you do.
The Atlas question is from June 13 and Quincy from dec 12 exams.
Anyway thank you for your answer. I hope what I know and learnt is still relevant as I use books until August 15.
Could you also please tell me if the calculation/ treatment of construction contract has changed? As it says on the website that IFRS15 replaces construction contracts.
The calculations in the free course notes are still valid for the construction in progress type questions. The IFRS 15 is applicable for those contracts as explained in my previous post
Sign in to reply to this topic.