Revenue Is Measured At The Fair Value

In accounting fair value is a reference to the.

Revenue is measured at the fair value. Posted by hardi at thursday march 11 2010. Revenue is measured at the fair value of the consideration received or receivable taking into account contractually defined terms of payment and excluding taxes or duty. Ias 11 uses similar principles to measure revenue from construction contracts stating that contract revenue is measured at the fair value of the consideration received or receivable 14. When the fair value of the goods or services received cannot be measured reliably the revenue is measured at the fair value of the goods or services given up adjusted by the amount of any cash or cash equivalents transferred par.

As stated earlier these implementation examples accompany but are not part of ias 18. The following specific recognition criteria must also be met before revenue is recognized. The company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Plant and equipment see ias 16 property plant and equipment intangible assets ias 38 intangible assets advance payments.

The standard defines fair value on the basis of an exit price notion and uses a fair value hierarchy which results in a market based rather than entity specific measurement. When the fair value of the goods or services received cannot be measured reliably the revenue is measured at the fair value of the goods or services given up adjusted by the amount of any cash or cash equivalents transferred. Ias 18 implementation examples. Where a seller.

At the fair value of the goods or services received adjusted by the amount of any cash or cash equivalents transferred. Ifrs 13 applies to ifrss that require or permit fair value measurements or disclosures and provides a single ifrs framework for measuring fair value and requires disclosures about fair value measurement. If a company sells its product but gives the buyer the right to return it the company should not recognize revenue until the sale is collected. Revenue is to be measured at the fair value of the consideration or contributions received or receivable if the transaction price is not expected to be paid for more than a year then the transaction price must be discounted trade discounts.

If the fair value cannot be measured reliably the revenue is measured at the fair value of the goods given up plus or minus any cash of cash equivalents transferred. Control of an asset means having the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. Revenue should be measured at the fair value of consideration received or receivable. Ii shoppers optimum loyalty card program the shoppers optimum loyalty card program allows members to earn points on their purchases in shoppers drug mart pharmaprix shoppers simply pharmacy pharmaprix simplement santé shoppers home.