Revenue Recognition
‘See
Socal gonds
anetng of servcos
Geta of ety att wich yd ies oan en
NOTE ceneetn sen wh nde enebuton ona ASH)
+ Daca dat wn ong evens ams:
* ease spenets (S17)
1 ids to ogy i vestments (5 28)
1 iaree conc im scope FPS 4
1 changes ntar vats ef nani aesttstles (AS 39)
1 Geages inva a tar cuortasets
1 Gages infor vauocrticoge aot (AS 41)
1 raton of mea ret
Princinal v Agent
+ Can bo cut o dotermine which is which ~ statorvent
‘ives examples of when entity acts as principal and should
terelore recognise revenve
+ Eni hse pir ocr oul tomes oer
+ ny ows oe of meri bere fer ken ae
lacing var (and posse ers)
+ Eni nas dso e determine pices
+ ny bears customers cedt isk ran paying casters
+ Monty isnot exposed to sigifcant sks and rewards ol
‘ownership ftom Sale of goodsirendering services = agent
+ Saat ereptnateeertiramaete
aig
Measurement
see aa vale of onieron received ercsrabe NBT
1 hon Be vaneactonefocivoy constses a ancy Fansacton toe
rans pas seated ctcoaurg hokare ors
+ Batrng vareaior:
1 tsar evenustanounrecehe> rer stove pe)‘Saal Goa
+ Recoited vino ALL the folavng codons mat
“Sua ys end rents of cone hava rete ober
‘ro coruuag matagotllnvovernt by set
‘ere can be elably mensured amano)
[Hobebe a are ecbrome bene wl ow ety ramames)
+ iss cured ao be teed can be ela assed
+ Exams hen ony my flan sgt fk nd tds te
+ ela an alia fo netlecerypertrmance tl covered
‘oma worarly evens =i? 7
+ yon colt rr crtrgn on draonct very
Biyertomts ane of good
ten goo av shored abet oetalaton and natn
* Soeidin pet of carta a
“ee gl esi th purchase an ony une
eames
+ erat ter eon tt aren oe ea
‘Sena nna renede
1 purl inet ses pocomaget ul eaeans
* Wore erm ere cera ara emt
ReamBsS acetate ces
so by Others + eeteuerenres™
+ Recognise revenue whon recognition ira are met => = gan,
reliably measured and probable inflows,
+ intros = using efecto intrest ate method
+ toylios => acral basis in accordance with substance of
‘agreement
+ vidends => when shareheders ight to receve payment is
‘stab ishod
"_eeeresany,.
EsseCustomer Lovaly Programmes,
+ These are incentives 1 buy productsisenvices and usualy
ental “award redis” (eg lequent yer mies)
+ Award cris are considered separate component of sles
‘wansaction and should be recognised at fi value
+ Hence proceeds is spilt into award credits (at far value) ard
balance tothe actual sale of goods/services
“Points of Interest”
+= Underrated statement
= viny?
+ lenis to theory and practical questions
+ ilyou consider tat wthout revenue business is nowhore you
seeits importance
+ Disclosure
+ Other considerations ~ don't underestimate the folowing:
+ customer loyaty programme (FRIC 13)
1 bastrvansactonsiwaving adverising sevice (IC 34)
reactions giving reo ausiments orevenuelprchasee
(Cooas)
Greate oman noe
ean comes