SIGNIFICANT FINANCING COMPONENT RIGHT TO PAYMENT

Advance received Amount receivable 1/1 Contract date

- Revenue recognition only on ToC. - Record revenue at PV 31/1 Advance due to bereceived
- Amortized C.L over the period till SD. - Amount booked is locked 1/3 Advance received
- Subsequent change in SP at Set. Date - Subsequent change in SP at Set. Date isn't 31/3 Good transferred as promised
is considered for G/L considered for G/L Cancellable Non-cancellable

Bank 100,000 C. Asset 82,645 1/1 No entry No entry

C. Liability 100,000 Revenue 82,645
ToC but subject to acceptance 31/1 No entry A/R 100,000
F. Cost 12,000 C. Lia 100,000
5 C. Lia 12,000 A/R 82,645
Revenue 82,645 1/3 Bank 100,000 Bank 100,000
F. Cost 13,440 ToC + R2P C. Lia 100,000 A/R 100,000
C. Lia 13,440
COGS 90,000 31/3 C. Lia 100,000 C. Lia 100,000
C. Lia 125,440 Inv 90,000 Revenue 100,000 Revenue 100,000
Revenue 125,440

If sales value is same C. Asset / A/R 8,264 NON - CASH CONSIDERATIONS

Int. Inc 8,264
C. Lia 125,440 C.A if ToC not transferred or nont accepted. F. Assets 100,000
Revenue 100,000 A/R if ToC transferred and goodsaccepted Revenue 1,000,000

P/L 25,440 Revenue recorded only if sales is certain Shares alloted for goods/services given
SP at time of transfer is 100,000

C. Asset / A/R 9,091 PAYMENT TO CUSTOMER

C. Lia 125,440 Int. Inc 9,091
P/L 24,560 C.A if ToC not transferred or nont accepted. 1m given to customer for setting up shop to buy goods from us
Revenue 150,000 A/R if ToC transferred and goodsaccepted
SP at time of transfer is 150,000 CA 1,000,000
Bank 100,000 Bank 1,000,000
COS 90,000 C. Asset/ A/ 100,000
Inv 90,000 If sales value is same
 ADVANCE MAINTENANCE CONTRACT

Refundable Non-Refundable Right to Receive Ex: 2 years maintenance contract.

i) Rs. 200,000 now ii) Rs. 110,000 / year
Dis Rate 6.596%
- If cancellable: No revenue or CA/AR is
recorded because we have no liability to
perform until we receive the amount. Bank 200000 A/R 110000
C. Liab 200,000 Revenue 110,000
Cash 100,000 Cash 100,000 A/R 100,000
C. Liability 100,000 C. Liability 100,000 C Liability 100,000 Int. exp 13192 Bank 110000
Amount due to be received on the date it C. Liab 13,192 A/R 110,000
C. Liability 100,000 C. Liability 100,000 becomes due
Revenue 100,000 Revenue 100,000 C. Liab 110000
Provided; Bank/AR/CA 100,000 Revenue 110,000
- PO performed and none remain Revenue 80,000
- Significant amountreceived C. Liability 20,000 Y-2: CL=200k+13k-110k Y-2:
- Non-refundable Rev 80K for sales tah is certain andrest to
CL Int. exp 6807 A/R 110000
C. Liab 6,807 Revenue 110,000
SETTLEMENT DISCOUNT
C. Liab 110000 Bank 110000
Expeceted Expeceted Not Expeceted Not Expeceted Revenue 110,000 A/R 110,000
Received Not Received Not Received Received
GOODS + MAINTNCE CONTRACT
CA 90,000 CA 90,000 CA 100,000 CA 100,000

Revenue 90,000 Revenue 90,000 Revenue 100,000 Revenu 100,000

Bank 90,000 Bank 100,000 Bank 100,000 Bank 90,000

CA 90,000 CA 90,000 CA 100,000 Revenue 10,000
Revenue 10,000 - - CA 100,000
 RIGHT TO RETURN
AMOUNT NOT RECEIVED (C.A) AMOUNT RECEIVED (Ref. Liab)
Retunr expected 10% Retunr expected 10% Retunr expected 0% Retunr expected 10% Retunr expected 10% Retunr expected 0%
1/1 Good transferred 100,000 1/1 Good transferred 100,000 1/1 Good transferred 100,000 1/1 Good transferred 100,00 1/1 Good transferred 100,00 1/1 Good transferred 100,00
COS 80,000 COS 80,000 COS 80,000 COS 8,000 COS 8,000 COS 8,000
31/1 Payment due 31/1 Payment due 31/1 Payment due 1/1 Amount received 1/1 Amount received 1/1 Amount received
28/2 Received for full 28/2 Received for 80% 28/2 Received for 90% 28/2 Returned 20% 28/2 Returned 0% 28/2 Returned 10%

C. Asset 90,000 C. Asset 90,000 C. Asset 100,000 Bank 10,000 Bank 10,000 Bank 10,000
Revenue 90,000 Revenue 90,000 Revenue 10,000 Revenue 9,000 Revenue 9,000 Revenue 10,000
Ref. Liab 1,000 Ref. Liab 1,000
R2R-Asset 8,000 R2R-Asset 8,000 COS 80,000 COS 80,000
COS 72,000 COS 72,000 Inv 80,000 R2R-Asset 800 R2R-Asset 800 Inv 80,000
Inv 80,000 Inv 80,000 COS 7,200 COS 7,200
A/R 100,000 Inv 8,000 Inv 8,000 Inv 800
A/R 90,000 A/R 90,000 C. Asset 100,000 COS 800
C. Asset 90,000 C. Asset 90,000 Inv 1,600 Ref. Liab 1,000
Bak 80,000 R2R-Asset 800 Revenue 1,000 Revenue 1,000

Bank 100,000 Bak 80,000 Revenue 20,000 COS 800 Bank 1,000
A/R 90,000 Revenue 10,000 A/R 100,000 COS 800
Revenue 10,000 A/R 90,000 Ref. Liab 1,000 R2R-Asset 800
Inv 20,000 Revenue 1,000

COS 8,000 Inv 16,000 COS 20,000 Bank 2,000

R2R-Asset 8,000 COS 8,000

R2R-Asset 8,000
 RIGHT TO REPURCHASE
Obligation / Right to Repurchase (no sale) Obligation to Repurchase at customer's request

Ex: Sold for Rs. 1,000,000 with
right/obligation to repurchase at
1,200,000 when FV will be Rs.
1,500,000. Rate 10%
Useful life 5 years to be repurchased
after 3 years.
(diff of 200k is interest)
Ex: Sold for Rs. 1,000,000 with
right/obligation to repurchase at
800,000 when FV will be Rs. 1,500,000.
Rate 10%.
Useful life 5 years to be repurchased
after 3 years
(diff of 200k is interest)
Ex: Sold for Rs. 1,000,000 with
Repurchase at 1,200,000 when FV will
be Rs. 1,100,000. Rate 10%
Useful life 5 years to be repurchased
after 3 years
Ex: Sold for Rs. 1,000,000 with
Repurchase at 800,000 when FV will
be Rs. 600,000. Rate 10%
Useful life 5 years to be repurchased
after 3 years
Ex: Sold for Rs. 1,000,000 with
Repurchase at 800,000 when FV will be
Rs. 900,000. Rate 10%
Useful life 5 years to be repurchased
after 3 years

IFRS - 9 IFRS - 16 IFRS - 9 IFRS - 16 IFRS - 15

Bank 1,000,000 RoU-A 1,000,000 Bank 1,000,000 RoU-A 1,000,000 RoU-A 1,000,000
Liabilty 1,000,000 Asset (CA) 1,000,000 Liabilty 1,000,000 Asset (CA) 1,000,000 Asset (CA) 800,000
P/L 200,000
Int. Exp 100,000 Bank 100,000 Int. Exp 100,000 Bank 100,000
Liabilty 100,000 L. Liability 100,000 Liabilty 100,000 L. Liability 100,000 Right/Obligation

RP=>SP = IFRS 9
Dep 200,000 Dep 200,000 Dep 200,000 Dep 200,000
All Dep 200,000 All Dep 200,000 All Dep 200,000 All Dep 200,000 RP<SP = IFRS 16

Int. Exp 100,000 Int. Exp 100,000 Int. Exp 100,000 Int. Exp 100,000
Liability 100,000 L. Liability 100,000 Liability 100,000 L. Liability 100,000 Obligation if customer demands

RP=>SP = IFRS 9
Dep 200,000 Dep 200,000 Dep 200,000 Dep 200,000
All Dep 200,000 All Dep 200,000 All Dep 200,000 All Dep 200,000 RP < SP + RP > FV @ Rep. date = IFRS 16
- Customer will sell for higher than MV
Int. Exp 100,000 Int. Exp 100,000 Int. Exp 100,000 Int. Exp 100,000
Liability 100,000 L. Liability 100,000 Liability 100,000 L. Liability 100,000 RP < SP + RP < FV @ Rep. date = IFRS 15
- IT IS A SALE
Dep 200,000 Dep 200,000 Dep 200,000 Dep 200,000 - Customer won’t sell for lower than MV
All Dep 66,667 All Dep 66,667 All Dep 66,667 All Dep 66,667

L. Liability 1,300,000 L. Liability 1,300,000 L. Liability 1,300,000 L. Liability 1,300,000

Bank 1,300,000 Bank 1,300,000 Bank 1,300,000 Bank 1,300,000
OTHER MATTERS
Reasonabl measure of prgoress:
Yes: Recognize revenue
No: Recogniez revenue to theextent of cost incurred that is expected to be recovered.

Unconditional right to receive

When passage of time is te only condition
 J K L Revenue
Revenue 312 456 20 3,250,000 3,250,000
Cost thuis year -270 -440 -20 750,000 125,000
Profit FTY 42 16 0 4,000,000 3,375,000

Revenue 312 456 0

Cash received -250 -380 0
C. Asset 62 76 0

Cost incurred 8200 12200

Dep 900 1200
9100 0.35 13400 0.75

Further cost 14800 6600

Dep 2100 900
16900 7500

T. est. cost 26000 T. est. cost 30000

Total Revene 40000 Total Revene 40000
Est Pofit 14000 Est Pofit 10000

Revenue 14000 Revenue till date 30000

Cost 9100 Less: priorrevue 14000
Proft FTY 4900 Revenu FTY 16000
Cost FTY 13400
Profit FTY 2600

Cash 12800 Cash 16200

Con. Asset 1200 20X1 Con. Asset 1000 20X2
Pg 57 / 261
Revenu
103 D 75 50 50
104 C 30 20 20
105 0.2 45 30 20
106 63 83 150 100 90
107 90
108
109 C 18 16
110 0
111 B
112 -0.5
113 A 600
114 A 25000 0.625
115 D 24150 11500
Total Revenue to date 180,000 cos 331.0345 8
Less: Prevrecognized (60,000) 268.9655 10
Revenue FTY 120,000 -2
0.413793
Less: Costto date (135,000)
Add: Cost prev recognized 15,000
Cost FTY (120,000)

Profit FTY 0
Revenue 3.6
Cash -3
Prov -1.1
-0.5
 40 40
55 31.42857 55 31.42857
50 28.57143 50 28.57143
145 100 105 60

15% 22.5 3.375

8 c 80% 20 16
9 b 5% 18 0.9
10 b 20.275
11 d 23.10454545 1.265
12 b
13 b 10000
14 c
15 c
16 c 90000
17 c 9490000 990000 8500000
18 b
19 b 24000
20 a
21 b 20.275
22 d
23 b
24 d
25 b
26 a
27 b
28 c
29 a
30 b
31 c
32 a
 50 33.33333 75000 50000 95000 76000
25 16.66667 30000 20000 30000 24000
75 50 45000 20000 125000 100000
150 100 150000 90000
 EX-15

100 Bank 800,000

A/R 991,736 Printing Machine
Revenue 1,791,736 Laminators
R2R-A 80 Plastic Cards
Inv 80 A/R 99,174
On transfer Int. Inc 99,174

A/R 100 A/R 109,091 Printing Machine

Revenue 100 Int. Inc 109,091 Laminators
Plastic Cards
COS 80
R2R-A 80
After 90 days

20X8
A/R 10
Int. Inc 10

20X9
A/R 11
Int. Inc 11
 EX-20 EX-22

A 40 40
15 800,000 12,000,000 B 55 55 33
8 400,000 3,200,000 C 45 45 27
100,000 12 1,200,000 D 15 - 45
16,400,000 100 100

EX-23
15 583,333 8,750,000 6,662,069
8 266,667 2,133,333 1,624,276 A 40 40
100,000 12 1,200,000 913,655 B 55 55 33
12,083,333 9,200,000 C 45 45 27
D 15 - 45
100 100

1.333333333 533333.3333
266666.6667

583333.3333
X-22 EX-34

40 Rev 39 11
33 Cost 26 16
27 13 -5
30
130

X-23

40
33
27
5
105
 EX-51

Bank 1,000 Bank 3,500.00

A/R 3,189 Revenue 3,500.00
Revenue 4,189
Reve 1,000.00
A/R 255 C.Lia / Ban 1,000.00
Int. Inc 255
A/R 2,400.00
A/R 2,500 C. Li 1,000.00
Bank 1,000 Revenue 3,400.00
Revenue 3,500

Revenue 689
A/R 689

Bank 3 Revenue
Revenue 3 3.5 3.32 3.32
0.3 0.28 0.09
3.8 3.6 3.41
Prodcut 3 2.85
D. Voucher 0.16 0.15
3.16 3.00 Bank 3.6
Revenue 3.41
Bank 3 C. Lia 0.19
Revenu 2.85
C. Lia 0.15
Bank 3.6
C. Lia 0.15 Reve 1.2
Revenue 0.15 C. Lia 2.4

Revenue 0.15 C. Lia 2.21

C. Lia 0.15 Revenue 2.21