Thanks for sharing your knowledge and expertise about IFRS 15. Having you as an instructor is a pleasure because you are very engaging and knowledgeable.
It's a very clear example to understand revenue recognition, fantastic. In between how we can take the revenue of hand-set for a year(How to justify it Life of hand set is ignored here) we can take network service for 24 months I.e 80×24 against hand set for 300? can be explained? Thanks
Thank you very much! May I also know the journal entries at the contract starts. Why is it debit to contract asset but not cash? how shall we put the double entries for receiving cash? is there a contract liabilities?
Because when the contract starts, the company does not receive any cash. The cash will be received of 100 paid monthly. And so, when this is received, the journal entry is Debit Cash / Credit Trade receivables (please revise the last entry in this video, where the trade receivables are recognized).
On the contract asset, if we have a sale of goods in 2021 and receiving payment in 2023. Assuming interest of 10 % outside market. Do we need to record initial recognition as Dr Contract asset Cr sale or Dr Accounts receivable Cr Sale
The contract does not necessarily need to be in written format, as soon as other types are accepted. The definition in IFRS 15 refers to contract being an agreement between 2 or more parties creating enforceable obligations - so the question is: If that contract is not signed, but services were provided, is the payment from customers for these services enforceable or not?
