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Hello, good time of day, Mr. Moffat.
Dear Sir, I have a small question to ask.
If, for example, I am preparing financial statements for a start-up business, which has only expenses and no revenues at the moment of my preparation, but expects to have revenues after building its factory, do I have to disclose revenue recognition in the notes to the financial statements?
Thanks in advance.
Here’s an extract:
‘The disclosure objective stated in IFRS 15 is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Therefore, an entity should disclose qualitative and quantitative information about all of the following: [IFRS 15:110]
its contracts with customers;’
What do you think?
If there’s nothing to disclose, then there’s nothing to disclose
But that doesn’t mean that you disclose nothing!
So disclose the fact that there are no contracts with customers and therefore there is … nothing to disclose
OK?
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