Assessment one (Report)
International Financial Reporting Standard 15 Revenue from Contracts with Customers (IFRS 15) establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers.
The Standard replaces two current standards previously used for Revenue recognition, i.e IAS 18 and IAS 11.
Required:
Write a report covering following areas:
• Introduction, Scope, objective and recognition criteria of IFRS 15 Revenue from Contracts with Customers.
• Reasons for issuing IFRS 15 Revenue from Contracts with Customers with the limitations of IAS 11 and IAS 18 and how IFRS 15 addresses those issues.
• Analysis of five step model framework for IFRS 15.
• Analysis of the possible impact of IFRS 15 application on revenue recognition practices of following industries.
1) Telecommunication
2) Manufacturing
3) Real Estate
4) Software Development
• Effect of incorrect recognition of revenue on financial reports.
• Disclosures requirements under IFRS 15 Revenue from Contracts with Customers.