Question

A brief outline in your own words of the key principle(s) underlying AASB15 Revenue from Contracts with Customers

Answer 1

AASB15- Australian accounting standards board 15 applies to all contracts with customers except those contracts which comes under other standerds. For example 1. Leases , 2. Insurense etc .

It is introduced to overcome all the weaknesses of previous standerds.

Its core principles are recognition of revenue for transfer of goods and services at consideration to which the entity is entitled , in return for meeting performance obligations.

. Identifying the contract with customers

. Identifying the performance obligations in the contract

. Determine the transaction price

. Allocation of transaction price to the performance obligations

. Recognize the revenue when the performance obligations are satisfied

These are the key principles of AASB15

Conclusion..

First of all we have to identify the contract that we entered with the customer , by this we have to recognize the obligations that we have to fulfill for the performance of the contract , then we shout fix a price which includes our profint element also , finally we have to recognize the revenue on the basis of our fulfillment of obligations based on completed work .