UPDATES ON  INTERNATIONAL FINANCIAL REPORTING STANDARDS 2016 - IFRS 15 REVENUE FROM CONTRACTS

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IFRS 15 – REVENUE FROM CONTRACTS

This standard will supersedes the IAS 18 effective January 2018.

5 step Approach

  • Step 1: Identify Contract with Customer
  • Step 2: identify Performance Obligations
  • Step 3 : Determine transaction price
  • Step 4: Allocate transaction price to Performance Obligations
  • Step 5: Recognise revenue

 

RECOGNITION

 

Changed from Transfer of Risks and Rewards of Ownership to Transfer of CONTROL & Transfer of goods and services to Customers.