What is a Core Revenue Recognition Principle on which revenue can be recognized by sellerWhat is...

What is a Core Revenue Recognition Principle on which revenue can be recognized by sellerWhat is a Core Revenue Recognition Principle on which revenue can be recognized by seller

Expert Solution

IFRS 15 Revenue from Contracts with customers

The core principle of IFRS 15 is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This core principle is delivered in a five step model framework

1. Identify the contract with customer

2. identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligation in the contract

5. Recognise revenue when the entity satisfies a performance obligation

Revenue is recognsed as control is passed,either over time or at a point in time

for more detailed explanation please refer IFRS 15

ekkarill92 answered 2 years ago

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