AC2101 S1 2014 Seminar 20 Revenue.pptx

Benets of the entitys performance as the entity

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Unformatted text preview: ing prices if they are not observable §༊  Residual estimation techniques may be appropriate - Discounts and contingent amounts are allocated entirely to one performance obligation if specified criteria are met 15 Step 5: Recognise revenue *  Goal: To recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (that is, when the customer obtains control) –  A performance obligation is satisfied over time if the entity’s performance either: *  Creates or enhances an asset (e.g. WIP) that the customer controls as the asset is created or enhanced; or *  Does not create an asset with alternative use where: - The customer benefits as the entity performs, or - Another entity would not need to re- perform work to date, or - The entity has a right to payment for work completed to date and expects to fulfil the contract 16 8 Step 5: Recognise revenue *  Goal: To recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (that is,...
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This document was uploaded on 02/10/2014.

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