milestone payments, and royalties. Under IFRS 15, revenue recognition for licenses of intellectual property depends on whether the license provides a right to access or a right to use the intellectual property. The business might recognize revenue from licenses either over time ...
The new rules on revenue recognition became effective from 1st January 2018 for entities reporting under IFRS, with early application permitted. Completing IFRS 15 requirements can lead to a plethora of accounting errors and audit findings. Therefore, our product aims to eliminate these inaccuracies, ...
The five revenue recognition steps of IFRS 15 – and how to apply them. 1. Identify the contract 2. Identify separate performance obligations 3. Determine the transaction price 4. Allocate transaction price to performance obligations 5. Recognise revenue when each performance obligation i...
Ifrs 15: Revenue Recognition Will Never Be the Same AgainBerchowitz, GaryWhitehead, Simon
Revenue recognition is a generally accepted accounting principle (GAAP). The principle defines when and how a business’ revenue should be recorded in its financial statements. Revenue recognition dictates when business income is realised and earned, when payment from the customer is received, and whi...
IFRS 15 recognizes2 types of licenses: license to use and license to access.The accounting treatment is different for both of them and you should be able to identify which license is in question. Other difficulties arise in areas common for every industry: dealing withcontract modifications, how...
If I have a license contract with a customer for 4 yrs, whereby the revenue is recognised point in time at the inception of the contract (i.e. grant of the license), but the billings are made monthly for the next 4 yrs. There seem to be a significant financing component, whereby I ...
Hi Tam, are you sure you need to recognize revenue at the point of time in this case? There are 2 types of licenses and when you have “right-to-access”, you actually need to recognize revenue OVER time. From what you wrote here, it seems this is this type of a license (as the...
The Staff believed that revenue from the sale of off-plan units,based on specific fact pattern as described in the submission, should be recognised at a point in time because none of the IFRS 15.35 criteria for recognition of revenue over time is met. The Staff focused their analysis on the...
The New Revenue Recognition Standard (IFRS 15) - an Analysis of its Impact on Financial Statements of European Telecommunication Companies? the study, we confirm that reporting entities increase discretionary revenue when their pre-managed operating income and net earnings are slightly lower th... A...