Respuesta :
Answer:
As per IFRS 15, that is Revenue from contracts with customer; it will significantly change in the revenue and profit recognition. The possible reasoning behind this is advice is because the rules of IFRS 15 are based upon the transfer of control for the goods and services to a customer, rather then trasnferring the risk and rewards to the customers.
Explanation:
The possible reasoning behind the advice of compliance with the bank covenants and the peformance based compensation is that the IFRS 15 changes it pattern to recognise the revenue over the period of time; this means that at the time of performance obligation the control is either transferred at the time of compliance or transferred over time.
Therefore, for applying the IFRS 15 rules the organization needs careful cosnideration and planning for the compliance of the contract with the bank covenants; and the compensation to be paid to the customers for the contracts need to be performed under complete consideration and planning.
Answer:
- Revenue from contracts with customers will change in the revenue and profit recognition.
- The rules of IFRS 15 are based on the transfer of control for the goods and services to a customer, rather than the transfer of risk and rewards to the customers.
Explanation:
- The organization needs careful consideration and planning for the compliance of the contract with the bank covenants and the compensation to be paid to the customers for the contracts.
- The possible reason behind the advice of compliance with the bank covenants and the performance-based compensation is that the IFRS 15 changes a pattern to recognize the revenue over the period of time; this means that at the time of performance obligation the control is either transferred at the time of compliance or transferred over time.
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