Track 6 · Intermediate
Revenue, Expenses and Profit
Revenue recognition under the five-step model, deferred revenue, expense recognition, cut-off and multi-period transactions.
- Lessons
- 8
- Exercises
- 49
- Time
- 3 h 30 min
Module 1
Revenue recognition
- 01
The five-step revenue model
Apply the five steps to a simple customer contract.
Journal entries · Calculations · Classification · Concept checks · Sequencing · IFRS 15, ASC 606
Members25 min - 02
Performance obligations
Identify distinct goods and services in a contract.
Journal entries · Calculations · Classification · Concept checks · IFRS 15.22–30
Members25 min - 03
Transaction price and allocation
Allocate the transaction price on relative stand-alone selling prices.
Journal entries · Worksheets · Calculations · Concept checks · Simulator · IFRS 15.73–80
Members30 min - 04
Over time or at a point in time
Decide when revenue is recognised and build a recognition timeline.
Journal entries · Worksheets · Calculations · Classification · Concept checks · Simulator · IFRS 15.35–38
Members30 min - 05
Contract modifications
Account for a change in scope or price as a separate contract or a modification.
Worksheets · Calculations · Classification · Concept checks · IFRS 15.18–21
Members25 min
Module 2
Expenses and cut-off
- 01
Expense recognition and matching
Recognise expenses in the period they are incurred and relate costs to revenue where appropriate.
Journal entries · Calculations · Classification · Concept checks
Members25 min - 02
Gross profit, operating profit and profit
Compute and interpret each profit measure and what moves it.
Worksheets · Calculations · Classification · Concept checks
Members25 min - 03
Revenue and expense cut-off
Test transactions around the period end and record cut-off adjustments.
Journal entries · Calculations · Classification · Concept checks · Sequencing
Members25 min