ACCO 310 Lecture Notes - Lecture 7: Barter
19 Mar 2017
School
Department
Course
Professor
Document Summary
Two main aspects: timing of revenue recognition + measurement of revenue (1) inflating revenues, seems like you have a greater market share than normal. Value of deliverables given up = value of consideration received. Non-monetary (barter transaction, such as exchange of goods/services) Seller continues to be involved (permission to return) Shipping terms fob shipping point (recognize when i start shipping), fob destination (wait until reception to recognize) Constructive obligations: implicit clause usually created through past practice, e. g. , sales return policy not explicitly specified in the agreement. Ifrs 15 (1) identify the contract with customers (2) identify the separate performance obligations in the contract: multiple obligations interdependent, one perf. Obligation: multiple obligations not related, multiple perf. Obligation (3) determine the transaction price (4) allocate the transaction price to the separate performance obligations (5) recognize revenue when/as each performance obligation is satisfied.
