Page 170 - F2 Integrated Workbook STUDENT 2019
P. 170
Chapter 7
1.3 Step 1: Identify the contract
IFRS 15 Revenue from Contracts with Customers says that a contract is
an agreement between two parties that creates rights and obligations.
An entity can only account for revenue from a contract if it meets the following
criteria:
the parties have approved the contract and each party’s rights can be identified
payment terms can be identified
the contract has commercial substance
it is probable that the selling entity will receive consideration.
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