Preliminary Views on Revenue Recognition in Contracts with Customers

Preliminary Views on Revenue Recognition in Contracts with Customers PDF Author: International Accounting Standards Board
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 130

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Book Description
And invitation to comment -- Revenue recognition based on changes in assets and liabilities -- A contract-based revenue recognition principle -- Performance obligations -- Satisfaction of performance obligations -- Measurement of performance obligations -- Potential effects on present practice.

Preliminary Views on Revenue Recognition in Contracts with Customers

Preliminary Views on Revenue Recognition in Contracts with Customers PDF Author: International Accounting Standards Board
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 130

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Book Description
And invitation to comment -- Revenue recognition based on changes in assets and liabilities -- A contract-based revenue recognition principle -- Performance obligations -- Satisfaction of performance obligations -- Measurement of performance obligations -- Potential effects on present practice.

Preliminary Views on Revenue Recognition in Contracts with Customers

Preliminary Views on Revenue Recognition in Contracts with Customers PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 118

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Book Description


Welcoming the New Revenue Recognition Standard

Welcoming the New Revenue Recognition Standard PDF Author: C. A. Ambalika Singh
Publisher: Independently Published
ISBN: 9781983132131
Category :
Languages : en
Pages : 170

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Book Description
The New Revenue Recognition Standard is a joint bold move made by both the FASB and the IASB to give top-lines of companies, across industries, a common denominator. It is a ground-breaking shift from the fair value measure of vendor specific objective evidence ('VSOE') to measure revenue, to one which takes into account what consideration the entity really expects to be entitled to receive from the contract with a 'customer'. Collaborative arrangements would come under the scanner as the collaborator may not be acting as a 'customer'. Moreover, the terms 'client' and 'customer' would no longer be fungible.ASC 606 provides guidance that will apply to all entities, including non-public entities that previously did not have extensive guidance. IFRS differs in this respect as IFRS for Small and Medium-sized Entities is available for entities that do not have public accountability.The new standard broadens the definition of revenue to include newer concepts like costs to obtain and fulfil a contract, material rights and gain and loss from sale of non-financial assets. The revenue is recognised upon control transfer rather than on delivery/ transfer of risks and rewards and the standard introduces the concept of 'control transferred at a point in time' and 'control transferred over time'. The standard requires management to increase exercise of judgment and estimate variable consideration, after applying constraints. The hierarchy for estimating stand-alone selling prices has been done away with. Allocation of discounts and assessing collectability may undergo a change as the two would be analysed at the worm's eye view level of the performance obligation and not at the bird's eye view level of the contract. Early in 2017, we saw ASU 2017-01 and ASU 2017-05 narrowing the definition of 'business' and defining an 'In Substance Non financial asset', respectively. The new definition of business disqualifies a set as a business when all or substantially all of the fair value of the gross assets (acquired or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets- think early stage life sciences companies, real estate and shipping companies. Further the new definition of business requires an input and a substantive process that together significantly contribute to the ability to create output- all of which should be acquired and evaluation of whether a market participant is able to replace the missing elements has been done away with. Further cost savings would not qualify as an output, which would be aligned with outputs described in ASC 606. The overall assessment of a business however still continues to be done from a market participant's angle and the buyer's and seller's intentions do not affect the analysis- same as today, except that the requirement of assessing whether a market participant would be able to replace missing elements has been done away with. These two ASUs impact the new revenue recognition standard from the point of view of a sale of non-financial assets to a customer- where the interest in an entity does not fall under the new definition of business but within the definition of essentially a non-financial asset.The new revenue recognition standard affects more than just revenue and impacts the business processes and results in dual SOX testing during the transition phase. With sufficient training, discussion and planning, all managements will be able to do the 'heavy lifting'.

Die Bilanzierung von Mehrkomponentengeschäften nach geltenden IFRS sowie dem Exposure Draft 2010/6 "Revenue Recognition in Contracts with Customers"

Die Bilanzierung von Mehrkomponentengeschäften nach geltenden IFRS sowie dem Exposure Draft 2010/6 Author: Gerald Sauer
Publisher:
ISBN:
Category :
Languages : de
Pages : 1

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Book Description
Auf Grund jüngerer Entwicklungen im Wirtschaftsleben kommt es immer öfter zum Auftreten sogenannter Mehrkomponentengeschäfte. Da weder deren Definition noch deren Behandlung in den bestehenden IAS/IFRS konkrete Regelung erfahren, werden diese nach den üblichen Bedingungen des IAS 11 und IAS 18 bilanziert. Dieser Rege-lungsmangel führt zwangsläufig zu einem erheblichen Ermessensspielraum beim Ansatz der betroffenen Umsatzerlöse durch die bilanzierenden Unternehmen und damit auch einer eingeschränkten Vergleichbarkeit der Jahresabschlüsse. Das Konvergenzprojekt ED 2010/6, das gemeinsam von FASB und IASB während einer achtjährigen Bearbeitungszeit entstanden ist, sollte diesem Regelungsmangel Rechnung tragen. Gegenstand dieses Projekts waren die Erfassung von Umsatzerlösen auf Grund von Kundenverträgen. Es sollten global anwendbare, prinzipienbasierte und vereinheitlichte Bilanzierungsregelungen geschaffen werden. Diese sollten Regelungslücken innerhalb der IFRS schließen und die mangelnde Vergleichbarkeit der nach US-GAAP aufgestellten Abschlüsse beseitigen. Der ED 2010/6 basiert grundsätzlich auf dem Asset/Liability - Approach. Trotz der zunächst postiven Reaktionen zum Discussion Paper Preliminary Views on Revenue Recognition Contracts with Customers im Jahre 2008 erfuhr der anschließend im Jahre 2010 präsentierte ED 2010/6 herbe Kritik, die sich vor allem auf seine zu detaillierten Regelungen, hohen Dokumentationsanforderungen und eine praktische Aufgabe des PoC-Verfahrens im Rahmen von Fertigungsaufträgen bezog. Auf Grunde dieser heftigen Kritik kam es im Zuge einer Re-Exposure zur Veröf-fentlichung eines neuen Drafts ED 2011/6, der einigen der Schwachpunkte des ED 2010/6 Rechnung trug. *****On account of new developments in economic activities so called multiple element ar-rangements have become more and more frequent. As existing IAS/IFRS rules regulate neither their definition nor their financial treatment, reporting practice follows the general provisions of IAS 11 and IAS 18. A lack of specific regulations, however inevi-tably allows companies a wide discretion concerning the reporting of these revenues, which limits the comparability of annual accounts. The convergence project ED 2010/6, which was developed by FASB and IASB working together for eight years, was designed to identify such shortcomings. The subject of this project was the recognition of revenues based on customer contracts in the balance sheet. The aim was to create globally useful, principle-based and standardized principles of proper accounting and, as a consequence, to close gaps in the regulations of IFRS and improve the comparability of financial statements prepared under the US-GAAP. ED 2010/6 is fundamentally based on the Asset/Liability-Approach. While initial reactions to the discussion paper called Priliminary Views on Revenue Recognition Contracts with Customers in 2008 were positive, the following ED 2010/6, which was presented in 2010, was heavily crit-icised, in particular due to its detailed regulations, high standards of documentation and the virtual abolition of the PoC-method for construction contracts. Due to this harsh criticism a new draft ED 2011/6 was published after a re-exposure, to address the weaknesses of ED 2010/6.

Welcoming the New Revenue Recognition Standard: Ind as 115 - Revenue from Contracts with Customers

Welcoming the New Revenue Recognition Standard: Ind as 115 - Revenue from Contracts with Customers PDF Author: Ambalika Singh
Publisher: Independently Published
ISBN: 9781092289580
Category : Business & Economics
Languages : en
Pages : 222

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Book Description
The New Revenue Recognition Standard is a joint bold move initiated by both the FASB and the IASB to give top-lines of companies, across industries, a common denominator. It is a move from the fair value measure of measuring revenue, to one which takes into account what consideration the entity really expects to be entitled to receive from a contract with a 'customer'. The new standard broadens the definition of revenue to include newer concepts like costs to obtain and fulfil a contract, material rights and gain and loss from the sale of non-financial assets. There is specific guidance around contract combinations and contract modifications. Collaborative arrangements have come under the scanner as the collaborator may be acting as a 'customer'. The standard interacts with the new leases standard and lease and non-lease components of a contract would need to be separated. 'Transfer of control to a customer' is the axis of the new revenue recognition standard. As control usually transfers before risks and rewards usually do, entities may witness an acceleration in revenue recognition. Distinct goods/ services are now determined based on whether they are both individually distinct and are distinct within the context of the contract. This may lead an increase or decrease in performance obligations leading to difference in timing of revenue recognition. Provision for loss on contracts of the non-onerous kind for construction contracts have been done away with. Increased judgement is needed for demarcating between a sale/ lease/ financing, estimating variable consideration after applying constraints and in the capitalization and amortization of contract costs-especially in case of a principal versus agent situation. More disclosures are required. This book brings you the impacts from an exotic mix of industries as varied as aerospace and defense, engineering, media and entertainment, airlines, pharmaceuticals, health care, early-stage life sciences, software, construction and real estate, retail and e-commerce, hospitality, telecommunications, shipping, automotive, outsourcing and investment companies and promises deep learning. The new revenue recognition standard affects more than just revenue and impacts the business processes and results in dual SOX testing during the transition phase. With sufficient discussions and training, all managements will be able to do the 'heavy lifting'.

Early Adoption of Topic 606 Revenue Recognition from Contracts with Customers

Early Adoption of Topic 606 Revenue Recognition from Contracts with Customers PDF Author: Sunita Rao
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 29

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Book Description


Model Rules of Professional Conduct

Model Rules of Professional Conduct PDF Author: American Bar Association. House of Delegates
Publisher: American Bar Association
ISBN: 9781590318737
Category : Law
Languages : en
Pages : 216

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Book Description
The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.

Revenue from Contracts with Customers (Topic 606)

Revenue from Contracts with Customers (Topic 606) PDF Author: Financial Accounting Standards Board
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 87

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Book Description


Revenue from Contracts with Customers (Topic 606)

Revenue from Contracts with Customers (Topic 606) PDF Author:
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 700

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Book Description


Recognition of Revenue From Construction Contracts According to IFRS

Recognition of Revenue From Construction Contracts According to IFRS PDF Author: Elias Fiebig
Publisher: GRIN Verlag
ISBN: 395687644X
Category : Business & Economics
Languages : en
Pages : 58

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Book Description
Bachelor Thesis from the year 2015 in the subject Business economics - Accounting and Taxes, grade: 1,0, European University Viadrina Frankfurt (Oder), course: International Accounting, language: English, abstract: Die Arbeit stellt die praktischen und theoretischen Konsequenzen der Umstellung der Umsatzerfassung nach International Rechnungslegungsstandards mit der Einführung des IFRS 15 dar. Dabei liegt der Fokus der Arbeit auf der bilanziellen Behandlung von Langzeitfertigungsaufträgen, zB. Eigentumswohnungen.