Revenue Recognition ‘See Socal gonds anetng of servcos Geta of ety att wich yd ies oan en NOTE ceneetn sen wh nde enebuton ona ASH) + Daca dat wn ong evens ams: * ease spenets (S17) 1 ids to ogy i vestments (5 28) 1 iaree conc im scope FPS 4 1 changes ntar vats ef nani aesttstles (AS 39) 1 Geages inva a tar cuortasets 1 Gages infor vauocrticoge aot (AS 41) 1 raton of mea ret Princinal v Agent + Can bo cut o dotermine which is which ~ statorvent ‘ives examples of when entity acts as principal and should terelore recognise revenve + Eni hse pir ocr oul tomes oer + ny ows oe of meri bere fer ken ae lacing var (and posse ers) + Eni nas dso e determine pices + ny bears customers cedt isk ran paying casters + Monty isnot exposed to sigifcant sks and rewards ol ‘ownership ftom Sale of goodsirendering services = agent + Saat ereptnateeertiramaete aig Measurement see aa vale of onieron received ercsrabe NBT 1 hon Be vaneactonefocivoy constses a ancy Fansacton toe rans pas seated ctcoaurg hokare ors + Batrng vareaior: 1 tsar evenustanounrecehe> rer stove pe)‘Saal Goa + Recoited vino ALL the folavng codons mat “Sua ys end rents of cone hava rete ober ‘ro coruuag matagotllnvovernt by set ‘ere can be elably mensured amano) [Hobebe a are ecbrome bene wl ow ety ramames) + iss cured ao be teed can be ela assed + Exams hen ony my flan sgt fk nd tds te + ela an alia fo netlecerypertrmance tl covered ‘oma worarly evens =i? 7 + yon colt rr crtrgn on draonct very Biyertomts ane of good ten goo av shored abet oetalaton and natn * Soeidin pet of carta a “ee gl esi th purchase an ony une eames + erat ter eon tt aren oe ea ‘Sena nna renede 1 purl inet ses pocomaget ul eaeans * Wore erm ere cera ara emt ReamBsS acetate ces so by Others + eeteuerenres™ + Recognise revenue whon recognition ira are met => = gan, reliably measured and probable inflows, + intros = using efecto intrest ate method + toylios => acral basis in accordance with substance of ‘agreement + vidends => when shareheders ight to receve payment is ‘stab ishod "_eeeresany,. EsseCustomer Lovaly Programmes, + These are incentives 1 buy productsisenvices and usualy ental “award redis” (eg lequent yer mies) + Award cris are considered separate component of sles ‘wansaction and should be recognised at fi value + Hence proceeds is spilt into award credits (at far value) ard balance tothe actual sale of goods/services “Points of Interest” += Underrated statement = viny? + lenis to theory and practical questions + ilyou consider tat wthout revenue business is nowhore you seeits importance + Disclosure + Other considerations ~ don't underestimate the folowing: + customer loyaty programme (FRIC 13) 1 bastrvansactonsiwaving adverising sevice (IC 34) reactions giving reo ausiments orevenuelprchasee (Cooas) Greate oman noe ean comes