Our company is developed by answering client expectations, focusing on cooperation to meet individual requirements and needs. In the service we provide the characteristics of the client's market branch are always taken into account, much as the location of the company's management headquarters, ownership structure as well as the current development stage of the business.
We act not only as advisors to our clients but also as their business partners, hence our motivation to learn and find ways to thoroughly understand the nature of the branches in which our clients' businesses work.
Our team provides comprehensive audit services in terms of fulfilling the company's legal obligations. We also ensure professional external audits for EU projects. However, simply performing the audit and delivering a raw opinion is not something we want to limit ourselves to. Our clients are always provided with detailed information as to make sure that data coming from accountants honestly reflects the actual situation of their business.
IFRS 15 includes detailed principles to be applied in certain areas of industry-specific accounting, and we have already presented some of them in our recent posts. It should be recalled that the additional guidance included in Appendix B to the standard is obligatory. In this article, we are going to focus on a general discussion of some of these issues.
We have recently written a lot about recognising revenue from construction and advisory services; today it is time for the next industry; this time, we are going to analyse the sale of non-material products. How should the revenue from the sale of the license and the service of software installation be recognised in the books?
Quality financial reporting, confirmed by an unqualified opinion of an auditor, seals the victory, proving that the information flow in the entity is flawless, the underlying aim of reporting is understood and the business is correctly reflected in the financial statements.
Advisory and legal services are among the industries (along with telecommunications, IT and real estate) where the evaluation of the actual impact of the new regulations (IFRS 15) on financial statements is going to require a meticulous analysis of the new standard as well as the terms and conditions of contracts concluded with customers.
We have recently devoted a lot of attention to the IFRS 15 standard which has introduced uniform principles for determining the time of recognising revenue irrespective of the service performed or the goods supplied (with certain exceptions). Today we are going to discuss the impact of these changes on reporting in companies on the example of recognising revenue from the performance of construction services.
In our previous posts we have presented four steps of the model framework for revenue recognition. The last step of the five-step model framework described in IFRS 15 is to recognise revenue once conditions related to different contract elements are met.
In the last post on the new standard of IFRS 15 we discussed determining the transaction price (the third step in the five-step model framework). Today we are going to take a look at the next stage, namely price allocation.
Recently, when discussing the five-step model framework and determining the transaction price according to IFRS 15 we mentioned the methods of estimating the transaction price; we have decided to elaborate on these methods in today’s post.
After a couple of weeks we are coming back in our blog to the analysis of the new standard, i.e. IFRS 15. Just like IFRS 9, it is critical for entities preparing their reports in line with IFRS, because they both must be introduced for the first time in financial reporting as at 31 December 2018. Therefore, it is a good idea to take a closer look at the topic of revenue recognition and discuss it further