The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.
 

Introduction
 
The IASB issued the long awaited IFRS15 “Revenue from contracts with Customers” with effective date for annual reporting period beginning on or after 1 January 2018. Early application is permitted. The IASB issued FRS115 with the same effective date as above. This Standard will replace the following Standards and Interpretations:

1. IAS11/FRS11                        Construction Contracts;
2. IAS18/FRS18                        Revenue;
3. IFRIC13/FRS INT 113         Customer Loyalty Programmes;
4. IFRSC15/FRS INT 115        Agreements for the Construction of Real Estate;
5. IFRIC18/ FRS INT 118        Transfers of Assets from Customers; and
6. SIC31/FRS INT 31  Revenue – barter Transactions Involving Advertising Services.

 
The new Standard requires entities to recognise revenue to reflect the transfer of control of goods or services to customers in an amount or amounts that represent the consideration to which the entity expects to be entitled in exchange for those goods or services.  It also provides guidance for transactions that were not previously addressed adequately by the various Standards dealing with revenue and improves guidance for multiple-element arrangements. Lastly the new Standards will enhance disclosures about revenue.
 
 
Programme Objectives

• This seminar provides the skills needed to steer through the complex technical requirements of the Standard
• Explaining the technical requirements of the Standard by using practical illustrations
• The impacts and effect on revenue before and after the implementations of the Standard

Programme Outline

PRACTICAL CASE STUDIES TO APPLYING THE FIVE-STEP APPROACH:
Step 1  Identifying and assessing existence of a contract with customers
Step 2  Establish present obligation(s) in the contracts
Step 3  Determining the transaction price
Step 4  Allocating the transaction price
Step 5  Recognize revenue upon transfer of control
 
PRACTICAL APPLICATIONS

• How to apply the above five-step approach to revenue from contracts with customers arising from various industries and businesses

 
RECOGNITION ISSUES

• Dealing with “revenue contract”
  • What is a contacts and how to identify the existence of such contracts
  • Deciding how to combine separate contracts for revenue recognition
  • Contractual terms that are outside the scope of the revenue
  • How to deal with contract modifications
• Dealing with “performance obligations”
  • Checking the ‘promises’ within the contractual terms
  • Identifying “performance obligations” arising from the ‘promises’
  • Deciding goods or services that are distinct, a bundle of distinct or a series of distinct
  • When “performance obligations” are satisfied by transfer of control – decide whether:
    • Is control transferred at a point in time or
    • Is control transferred overtime

 
 MEASUREMENT ISSUES

• Transaction price
  • Identifying and determining transaction price
  • Dealing with significant financing component
  • Dealing with non-cash consideration
• Allocation of transaction price to performance obligations
  • Allocating the transaction price to performance obligations
  • Deciding ‘stand-alone selling prices’ for allocation purposes
  • Allocation of discount
  • Variation to transaction price

 
 
DEALING WITH CONTRACT COSTS

• What are incremental cost of obtaining a contract
• Dealing with costs to fulfill a contract
• Deciding the methods of amortising contract cost when revenue is recognised
• Under what circumstances contract costs can be impaired

 
 
PRESENTATION AND DISCLOSURE

• Presenting revenue in the main financial statements
• Qualitative and quantitative disclosure as follows:
  • Contracts with customers
  • Significant judgements used in applying this Standards
  • The entity’s performance under the contract
  • How entity determine the timing of satisfaction of performance obligations
  • Allocation of transaction price
  • Assets recognised from costs to obtain or fulfill a contract

 
 
TRANSITIONAL PROVISIONS

• Dealing with transition from the existing Standards and interpretations to the New Standard

 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that can comprehensively cover the new principles of revenue recognition, as well as a discussion on the potential changes to and updates on the current Generally Accepted Accounting Practice on revenue recognition are welcome to attend.

Programme Facilitator(s)