Should repurchase transactions be accounted for as sales or loans?
All repurchase-to-maturity transactions, as defined, should be accounted for as secured borrowings, as mandated by ASC 860-10-40-24A.
What costs can be capitalized under IFRS 15?
IFRS15 requires that, in order for contract acquisition and retention costs to be capitalised, they must be incremental (i.e. costs that would not have been incurred had it not been for the acquisition/retention of the customer contract). IFRS15 does not determine how much costs should be capitalised or when.
What are the exceptions of IFRS 15?
Also, be aware that there are some exclusions from IFRS 15, namely: Leases (IAS 17 or IFRS 16) Financial instruments and other rights and obligations within the scope of IFRS 9 (IAS 39), IFRS 10, IFRS 11, IAS 27, IAS 28; Insurance contracts (IFRS 4) and.
What are the key changes in IFRS 15?
The biggest changes will be noticed by the entities offering products and services in multiple item packages; selling licenses; providing services in a form of long-term contracts and those who apply variable price or conditional remuneration in their contracts with clients.
How does a repurchase agreement work?
A repurchase agreement (RP) is a short-term loan where both parties agree to the sale and future repurchase of assets within a specified contract period. The seller sells a Treasury bill or other government security with a promise to buy it back at a specific date and at a price that includes an interest payment.
What is meant by repurchase agreement?
A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price.
Which costs may be included within contract costs?
Generally, contract costs would include all direct costs (such as direct materials, direct labor) and direct expenses and any construction overhead that could specifically be allocated to specific contracts.
How is transaction price determined IFRS 15?
In determining the transaction price, the entity must adjust the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provides the customer or the entity with a significant benefit of financing …
How do you recognize revenue under IFRS 15?
The core principle of IFRS 15 is that revenue is recognised when the goods or services are transferred to the customer, at the transaction price.
What is a contract asset under IFRS 15?
IFRS 15 includes the following definitions: Contract asset. An entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). Contract liability.
What is the objective of Pfrs 15?
Objective. The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.
What is the date of transition to Pfrs?
PFRS 17, ‘Insurance contracts’ PFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts and investment contracts with discretionary participation features. Effective annual periods beginning on or after 1 January 2021.