Author Archives: Seth Owusu

What Is A Contract Asset Under IFRS 15?

IFRS 15 – Revenue from Contracts with Customers has been effective since 1st January, 2018. It introduced the five-step model to revenue recognition and created a new category of assets called “Contract Asset”. In this article, we consider contract assets and show how they differ from a trade receivable. Definition A contract asset is defined in IFRS […]

IFRS 15 – Revenue from Contract with Customers: The Five Step Model?

IFRS 15 – Revenue from Contracts with Customers (IFRS 15), which became effective from 1 January 2018, makes significant changes to accounting for revenue. In this article we highlight the fundamental changes introduced by IFRS 15 and use a case to show the steps in determining revenue. When is Revenue Recognized? An entity recognizes revenue […]

IFRS 15 – Revenue from Contracts with Customers: What is A Contract?

International Financial Reporting Standard (IFRS) 15 – Revenue from contracts with customers came into effect on 1 January 2018. It defines revenue and sets the rules for recognizing, measuring and disclosing revenue from contracts with a customer. Having a contract with a customer is a precondition for applying IFRS 15. So, what is a contract? […]