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Ias 18
Ias 18
SCOPE MEASUREMENT
Applied to revenue = Does not deal with revenue Measure @ FV of consideration Imputed rate of interest = more When uncertainty arises about Revenue & expenses
gross inflow of economic arising from: received/receivable (excluding trade clearly determinable of EITHER: collectability of amount already related to same transaction
benefits during period Lease agreements (IAS 17). discounts & volume rebates) Prevailing rate for similar instrument recognized in revenue → recognized simultaneously
arising in course of Dividends arising from When payment is deferred →determine of issuer with similar credit rating OR recognize uncollectible (“matching”). If expenses
ordinary activities of an investments accounted for FV by discounting all future cash flows Rate of interest that discounts amount/amount for which cannot be reliably
entity when those under equity method using an imputed rate of interest. nominal amount of instrument to recovery ceased to be probable, as measured → recognize
inflows result in ↑in (IAS 28). Difference in FV & nominal amount current cash sales price of expense in period identified liability for consideration
equity, OTHER THAN ↑ Insurance contracts →recognize as interest revenue. goods/services. instead of adjustment of revenue. already received.
relating to contributions (IFRS 4).
from equity participants. Δs in FV/disposal of Goods/services exchanged/swapped for: Identification of the transaction
financial assets & liabilities/ Those of similar nature & value (e.g., oil Standard usually applied separately to each transaction. Sometimes necessary to apply recognition
Amounts collected on (IAS 39). suppliers swapping inventories in various criteria to separately identifiable components of single transaction to reflect substance.
behalf of third parties Δs in value of other current locations to fulfill demand) → NOT Example: if selling price of product includes identifiable amount for subsequent servicing, that amount
(e.g., taxes) → NOT assets. transaction that generates revenue. is deferred & recognised over period service performed.
revenue as no inflow of Initial recognition & from Those of dissimilar nature & value → Recognition criteria are applied to 2 or more transactions together when they are linked in such a way
economic benefits. Δs in FV of biological assets generates revenue measured @ FV of that the commercial effect cannot be understood without reference to transaction series as a whole.
Agency relationships → and initial recognition of goods received adjusted for cash & cash Example: Entity may sell goods & enter into separate agreement to repurchase goods @ later date →
revenue = commission agricultural produce equivalents transferred. negates substantive effect of transaction and accordingly the transactions are dealt with together.
NOT amounts collected (IAS 41).
for principal. Extraction of mineral ores. RECOGNITION OF REVENUE ARISING FROM THESE EVENTS: