Page 160 - FR Integrated Workbook 2018-19
P. 160
Chapter 12
1.6 Step 5: Recognise revenue
Revenue is recognised when (or as) the entity satisfies a performance obligation by
transferring a promised good or service to a customer.
An entity must determine at contract inception whether it satisfies the performance
obligation over time or at a point in time.
Performance
obligation
Satisfied over Satisfied at a
time? point in time?
1.6.1 Consignment inventory
Where goods are provided to a customer on consignment, it is important to identify
whether the seller or the buyer has control in order to establish whether revenue may
be recognised.
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