BU387 Chapter Notes - Chapter 6: Finished Good, Remittance, Consignor
Document Summary
Revenue recognition is difficult when we have multiple services: sales transactions often involve transfer of good, services or both (deliverables, accounting is different under each situation, sale of goods physical assets with finite point when control transfers to buyer (transfer of legal title and possession, sale of services legal title and possession irrelevant, sale of goods and services combinations: What is being received? multiple deliverables: consideration being received for goods and services sold is either, cash or cash like (monetary, non monetary (another good/service also known as barter, generally assume that the transaction is at arm"s length (between unrelated parties, value of deliverables sold = value of consideration received. Take goods and put them in a segregated part of your warehouse to avoid counting during physical inventories: inclusion of extras , concessionary terms may create additional obligations or may indicate that control has not passed to the buyer, under ifrs: these are performance obligations, must allocate proceeds to performance obligations.
