ACC 406 Lecture Notes - Lecture 5: Consignee, Consignor

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: D.Zathy B.Macmaster

Document Summary

[ understanding nature of sales transaction from a business perspective] Terms negotiated by a party to the contract that are more favorable than normal. When entity sells something, it enters into contract with the customer. Establishes when legal title will be passed, for example: Fob destination: when goods are delivered: constructive obligation. Implicit obligations that are not stated explicitly, could be established through past practice. [ recognition and measurement: asset-liabilities approach (contract-based approach) followed by ifrs. Measures and recognizes revenue based on changes in assets and liabilities. Identify the separate performance obligations within the contract: determine the transaction price, allocate the transaction price to each performance obligations, recognize revenue when each performance obligation is satisfied. [ objective 3 expansion of 5 step process ] Promise in a contract to provide a product or service to a customer: determining the transaction price.