RSM220H1 Lecture Notes - Lecture 6: Measurement Uncertainty, Consignor, Barter
Document Summary
Sales transactions involve transfer of goods, services, or both (deliverables) Physical assets with finite point when control transfers to buyer. Complexity in measuring each component of bundled sales or multiple deliverables. Know what is being received for goods and/or services sold (consideration) Value of deliverables sold = value of consideration received. Are sales done under normal terms or special/unusual circumstances. Concessionary terms can create additional obligations or indicate control has not passed to buyer. Rights and obligations of sales transactions are described and governed by law. Contract creates enforceable obligations and establishes terms of deal. Sales contract determines point when legal title and possession pass on to customer. Implicit obligations not specifically outlined in sales contract may also be enforced under law. Risks and rewards may be considered transferred even if legal title/possession don"t pass to buyer. Forestry and agricultural products with assured prices and available markets ii. iii. iv. Seller has no continuing involvement or control over goods.