Do you own a business? And are you taking care of the accounting yourself? We understand the struggle. We can say that accountants speak another language. When looking at your business through the eyes of an accountant you will see a completely different place. All interactions, transactions and objects can be labelled and stored under a different folder and name. How to keep track of all these labels though? In this article we will explain you one of them, namely the IFRS 15. This label concerns itself with the revenue gained from customer contracts. We know, this does not make it any clearer. Read on and find out more about IFRS 15.

IFRS 15, what is that all about, and what do I certainly don’t want to miss?

The objective of the International Financial Reporting Standard (IFRS) 15 is to have a principle that all entities apply to report only useful information to other users of financial statements. This is about the amount, nature, uncertainty and the timing of the cash flow and revenue that arise from the contract with a customer. This is quite a lot of information; how do you go about that? Don’t worry there is an easy 5 step model that you can use to cover the core principles:

  • First, identify the customer contract
  • Second, identify within the contract the performance obligations
  • Third, the transaction price needs to be determined
  • Fourth, the transaction price needs to be allocated in compliance with the performance obligations from within the contract
  • The revenue needs to be recognized when (or as) the performance obligation is satisfied by the entity

Other things you need to take into account when you are accounting with the IFRS 15 are:

  • Pre-contract establishment date activities, and the partially satisfied performance obligations which are before the contract was identified
  • The sales made from out of the ordinary activities
  • Upon the entity satisfying the performance obligation the revenue is recognized
  • The modifications in the utilities and power contracts
  • The power purchase agreement in the IFRS 15

We can imagine you do not understand yet what all these considerations entail, and we did not either before reading the annualreporting.info website. Here you will find the answers to all your questions.

Why you should use annualreporting. Info for your IFRS 15 and other questions

One of the beauties of accounting is that things are frankly black and white. In this profession there is no room for ambiguity. This makes it a clear language that makes you able to understand any kind of business, anywhere in the world. Though it is important that you learn the right information, otherwise this will cost you a lot of money as well as time. At annualreporting.info you will find all the necessary information about the IFRS 15 as well as all other accounting labels. It is easy to have it all in one place. Are you curious about what to store under this label and to learn more about it? Then quickly go to annualreporting.info/.“>https://annualreporting.info/. Here you will find all information on this subject. don’t miss anything and surf to the website. Not later, but now!