- 7 Marks
FR – Nov 2021 – L2 – Q3b – Revenue from Contracts with Customers (IFRS 15)
Explain the core principles of IFRS 15 for recognizing revenue from contracts with customers.
Question
IFRS 15 – Revenue from Contracts with Customers sets out principles to be applied in order to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.
Required:
(i) Explain the core principles upon which IFRS 15 is based. (2 Marks)
(ii) Briefly explain the five-step model involved in the application of the core principles. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Core Principles, IFRS 15, Performance Obligations, Revenue Recognition, Transaction Price
- Level: Level 2
- Topic: Revenue from Contracts with Customers (IFRS 15)
- Series: NOV 2021
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