Transaction Price – NBC Institute

FR – May 2022 – L2 – SB – Q5 – Revenue from Contracts with Customers (IFRS 15)

Compare contract liabilities and assets, stand-alone selling price vs. transaction price, and assess contract modification criteria.

Question

IFRS 15 – Revenue from Contracts with Customers defines a contract as an agreement between two or more parties that creates enforceable rights and obligations.

Required:
a. Compare with an example, where necessary:
i. Contract liabilities versus contract assets (2½ Marks)
ii. Stand-alone selling price versus transaction price (2½ Marks)

b. Under IFRS 15, highlight SIX criteria to assess a contract. (6 Marks)

c. Explain what is meant by contract modification and state TWO ways in which it can be accounted for. (4 Marks)

Answer

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Tags: Contract Assets, Contract Liabilities, Revenue Recognition, Stand-Alone Selling Price, Transaction Price
Level: Level 2

Topic: Revenue from Contracts with Customers (IFRS 15)
Series: MAY 2022

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)

Answer

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

FR – May 2022 – L2 – SB – Q5 – Revenue from Contracts with Customers (IFRS 15)

Compare contract liabilities and assets, stand-alone selling price vs. transaction price, and assess contract modification criteria.

Question

IFRS 15 – Revenue from Contracts with Customers defines a contract as an agreement between two or more parties that creates enforceable rights and obligations.

Required:
a. Compare with an example, where necessary:
i. Contract liabilities versus contract assets (2½ Marks)
ii. Stand-alone selling price versus transaction price (2½ Marks)

b. Under IFRS 15, highlight SIX criteria to assess a contract. (6 Marks)

c. Explain what is meant by contract modification and state TWO ways in which it can be accounted for. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Assets, Contract Liabilities, Revenue Recognition, Stand-Alone Selling Price, Transaction Price
Level: Level 2

Topic: Revenue from Contracts with Customers (IFRS 15)
Series: MAY 2022

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

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)

Answer

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

Question Tag: Transaction Price

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FR – May 2022 – L2 – SB – Q5 – Revenue from Contracts with Customers (IFRS 15)

Compare contract liabilities and assets, stand-alone selling price vs. transaction price, and assess contract modification criteria.

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.

FR – May 2022 – L2 – SB – Q5 – Revenue from Contracts with Customers (IFRS 15)

Compare contract liabilities and assets, stand-alone selling price vs. transaction price, and assess contract modification criteria.

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.

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