Q1: Discussion questions
Discuss recognition criteria for revenue in relation to goods and services and their treatment in the financial statements per IFRS 15 – Revenue. Explain “risk and rewards of ownership” concept in relation to revenue recognition. (200 words)
How do we deal with revenue received in advance and revenue for bundled product and service. (100 words)
Discuss the recognition criteria for construction contracts per IFRS 15 – Revenue. (100 words)
Explain what is “off balance sheet financing”, why it is important to address this issue and how IAS17 Leases addresses this issue. (up to 150 words)
Discuss the difference between operating and finance lease. Why is it important to distinguish between these two and what risk do they pose to users of accounts? What are the accounting treatments/factors of finance and operating leases in financial accounts per IAS 17. (up to 300 words)
Explain the difference between provision, contingent liability and contingent asset per IAS 37- Provisions, Contingent Liabilities and Contingent Assets and recognition criteria in financial statements (up to 200 words)
Critically discuss adjusting and non-adjusting events and their treatment in the financial statements per IAS 10 – Events after the Reporting Period. (up to 150 words)
Q3.
– Select a recent annual report for a company(s) of your choice and provide examples of provision, contingent liability, contingent assets and events after balance sheet date (adjusting and non-adjusting events). Based on your analysis and write a short summary (up to 300 words total)