IFRS 15 Revenue from contracts with customers

Overview

Every profit oriented organisation wants to maximise its profit, thus revenue. The core principle of IFRS 15 standard requires an entity to recognise revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for transferring those goods or services to the customer. A question arises, how can we define the consideration that an entity expects to be entitled to in exchange for goods? How to recognise revenue if within one contract we sell one good and also a service for a total price of CU 1,000 for example? What amount shall be recognised as revenue if the customer can claim a refund for 3 months after delivery? 

There are many interesting questions related to revenue recognition. IFRS 15 standard does not distinguish between sales of goods, services or construction contracts. It defines transactions based on performance obligations satisfied over time versus point in time. This course explains the scope of IFRS 15 standard, after which the 5 step approach is explained in detail using practical examples and interim tests to enhance understanding. 

This course will enable you to:

• decide if the item of income is in the scope of the IFRS 15 standard

• understand IFRS 15 standard’s 5 step approach

• identify the contract with the customer, including situations of contract combination and contract modification

• determine the transaction price by understanding the complexities including the effects of variable consideration, significant financing component, non-cash consideration, variable consideration, etc. 

• allocate the transaction price

• define the revenue recognition pattern at a point in time or over time

This e-learning course takes approximately 50 minutes to complete, and as such, it can provide 1 learning hour – 1 CPD point based on a 50-minute hour. Upon completion of this course, you can print the certificate of completion as an evidence that you undertook the course.

In case you need CPA CPE credit points, please contact us for the certificates.

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Further information:

• Training hours: 50 minutes

• CPD: 1.0

• Language: English

• Topics: IFRS, Reporting
• Sector: Corporates

• Training method: E-learning

• Type: Single course

• Geographic relevance: Global

This e-learning course is part of an e-learning series designed by PwC’s Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.