How to recognize revenue in construction contracts -Output Method - Example and Journal Entries
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- เผยแพร่เมื่อ 6 ส.ค. 2020
- Percentage of Completion Method - IFRS 15 -Output Method or work certified method explained with example and Journal Entries.(Advanced Level)
How to recognize revenue as per IFRS 15 if the performance obligation is being satisfied over a period of time
In this Session the concept and application of output method is fully explained with help of example and Journal entries.
#RevenueRecognitionOutputMethod
#IFRS15outputMethod
This videos help me very much but only one doubt is you taken only actual cost but I read one book cost is calculated (acutal cost+cost to complete)*%completion whats your opinion
As for as cost is concerned actual cost will be taken as per ifrs 15 paragraph 98 (C).
@@AccountingandQuickbooks Thanks
As u mentioned above concept or formula used in In put method.
Yes. Cost side will remain same.
Can you share its pdf?
wow I'm so impressed of your work.
Very comprehensive video, really like it!
Well explained
thanks.
Comprehensive example, Thanks brother. No differences between your clarification and what is exist in Becker FAR CPA Exam review.
Great sir
Wonderful video
You have very nicely explained
I am very happy to learn this
May Allah bless you
Keep on doing such videos
Please complete all IFRS rules
Thanks and regards
Thanks a lot dear. You comments means a lot to me.
Does accrual by% net of vat? As %completion revenue has not been calculated prior to VAT remittance for Dec. appreciate your views. thanks
Thank u bro
What is the difference between cost in excess of billing and billing in excess of cost in contract accounting?
If the contract is in foreign currency. Please inform what exchange rate we should use for revenue recording and billing customer
the billing balance(asset) in the first year is 5000 and the billing balance (liability) in second year is 5000, what are the journal entries for this and how it adjust at the time of next invoice?
Hi sir, can I get this sheet!?
How can we recognise asset that is Contract CIP with profits? Shouldn't it be recognised at cost. GP being credit amount would go to capital account liability side.
Please Elobrate with Example
What is billing account this should be project revenue sir
Plz clear this point
Project revenue is already being charged on percentage of completion method. Pls watch full session again the revenue from construction contracts are not treated as the same way like any other transactions
If you have already seen my video on how to do accounting for Construction Contracts in that video percentage completed =work certified =billed amount however here billed (invoice value) is not same as work completed or percentage performed so revenue recognition is based on percentage of the completion not how much we have billed the client.
can you please excel?
The formula which is used to calculate the contract asset that is total cost to date plus profit attributable is obsolete now as IFRS 15 amd technically incorrect. This was the old formula as per IAS 11. The correct formula for calculating the contract asset as per IFRS 15 is "revenue till date less amounts invoiced date" then you will have a contract asset. Although you will get the same answer but technically it is wrong
It's as per ifrs 15 Para 98
@6:35
Pls share the worksheet if possible
I will check if i could found it
Can you share the file you explained above with me?
I will check In my laptop if found will share in description actually it was in my old laptop it would be difficult to find.
Hi can u share the excel work book?
Don't have lost that data😔
@@AccountingandQuickbooks thank you very much for remembering and replying :)
And WIP this is your cost this should be under profit & loss A/c
Pls see the full Video. Construction accounting is differently treated cost incurred during the period has already been charged. If you see full session you will understand. Thanks
WIP is B/s item. it will be zero at end of project against billing account.