Anonymous
Share this content
1

Revenue Recognition from Service Contracts with Customers

Revenue recognition from Service Contracts

Didn't find your answer?

If a company signs a contract with a customer for online advertisement spanning for 6 months with a value of $500. The customer only pays for 3 months amounting to $250. So how should the company record its revenue from such a contract? Should the entity record revenue using the face value of the contract or actual collections? Please answer using the rules of IFRS.

Replies (1)

Please login or register to join the discussion.

avatar
By khaskheli1
May 5th 2018 11:29

According to IFRS 15 revenue is recognized based on the satisfation of performance obligation. Although contract is for 500 but not rendered if rendered then can recognizes full or if services are already given for 6 months still can recognize as full for 500.

Thanks (1)
Share this content