5-step Model for Revenue Recognition under IFRS 15 + Example + Journal entries

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Күн бұрын

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How to apply 5-step model? This example deals with the typical telecom contract where the customer gets free mobile phone if he signs up for 12-month plan of network services.
Journal entries included!
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Пікірлер: 36

@CPDbox Жыл бұрын

Thanks for watching! Let’s connect: *Newsletter: www.cpdbox.com/ *LinkedIn: www.linkedin.com/in/silviamahutova/ *Instagram: instagram.com/cpdbox/

@VictorFromCharleville 9 ай бұрын

The CLEAREST teacher of accounting in the world. God bless you, Madam.

@mansijain4258 Жыл бұрын

never seen sich a simplified video on a complicated topic. Thanks a lot. Learnt instantly from this. Way better than textbooks

@saudahmed70 Жыл бұрын

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.

@mohitagarwal220 25 күн бұрын

Very nicely articulated!

@RVinay-oy2ny 3 ай бұрын

Really such a crisp and wonderful explanation, Madam. Thank you so much once again😊

@sunilpinto8428 2 күн бұрын

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

@VinodYadav-nn2lj Жыл бұрын

As always, Awesome content. Thank you so much.

@AbrasionUK Жыл бұрын

Fantastic video. Very clear example. Subscribed

@jenniferlim2250 Жыл бұрын

Concise and clear. Danke! 👍

@adhilnasoordeen4388 4 ай бұрын

This one's really helpful. Thankyou

@aliliakot347 Жыл бұрын

Important vedio,Many many thanks

@ramiabdrabuh7069 9 ай бұрын

very useful information, thank you

@saverykong2149 Жыл бұрын

Good afternoon Silvia! Could you explain the amendment of IAS 12 ?

@aquarisahuja 11 ай бұрын

Great content. Thank u so much.

@accountantmahmoudrdwan7749 4 ай бұрын

great presentation

@rhodakejik43 Ай бұрын

WOW, WELL SIMPLIFIED

@COBBLEist 3 ай бұрын

Very thank you!

@masrito7084 7 ай бұрын

Short and sweet

@oppahchoga9186 Жыл бұрын

Much appreciated ♥

@mengistutadesse3796 5 ай бұрын

Thank You!

@automotivelegends9831 7 ай бұрын

You are a hero :)

@thandosdance1504 6 ай бұрын

Thank u so much!

@fedupvinny7352 4 ай бұрын

Thank you 🙏🏾

@islamhussein9816 4 ай бұрын

Thank you so much

@GamingThunders 7 ай бұрын

Amazing video..but can you please clear my confusion with what will be the value of cost of sales and the inventory?

@cacharchit2474 8 ай бұрын

Awesome 😍

@user-gs8jc5dr8h 2 ай бұрын

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?

@CPDbox Ай бұрын

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).

@amritarai5434 Жыл бұрын

you saved me !

@raghuramc1536 Ай бұрын

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

@LeoGoodman2475 11 ай бұрын

Nice！

@jatinsaini862 Жыл бұрын

cost of sales Dr To Inventory. The amount in this entry would be 300? or something else

@hemanthkoundinyakasi4762 Жыл бұрын

Actual Cost of the phone set.

@s.c.iimmograndest6705 4 ай бұрын

Is possible to recognise revenue in the case of an agreement for services, despite contract has been not yet signed? (but service is already provided)

@CPDbox 4 ай бұрын

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?