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3- Revenue - Coggle Diagram

- - - - Revenue for the transferred products which the entity is expected to be entitled. Products to be returned are not recognised
      - A refund liability
      - An asset (corresponding entry to COS) for its right to recover returned products
  - - - Separate performance obligations
    - - IAS 37
    - - The promised service is a performance obligation
  - - - Control the g&s before the transfer
        
        Indicators of control
        
        Primarily responsible for fulfilling the promise to provide specified g&s
        
        The entity has inventory risk
        
        Entity has discretion in establishing the price
    - - Arranges for g&s to be provided by other party
  - - - relate
        
        account for as promised goods and services
        
        at a point in time
      - does not relate
        
        it is just an activity that the entity is required to undertake such as administrative task
        
        treat as advance payment and recognised revenue as performance obligations satisfied over time
- - - - The remaining amount of the considerations expected to be received less the costs that relate directly to providing them that have not yet been recognised as an expense
- - - - Will be included if it is highly probable that there is no significant reversal of cumulative revenue
      - Measurement
        
        If large number of contracts with similar characteristics
        
        Probability weighted expected value
        
        If only two possible outcomes
        
        Most likely outcome
- - - - The customer simultaneously receives and consumes the benefits provided by the performance as the entity performs
      - The performance creates or enhances an asset that the customer control as the asset is enhanced or created
      - The asset created does not have an alternative use to the entity and the entity has enforceable rights to payments
      - Revenue recognition
        
        Measuring progress towards complete satisfaction of that performance obligations
    - - Criteria
        
        Entity has present rights to payments
        
        Customer has legal title to the asset
        
        Entity has transferred physical possession of the asset
        
        The customer has significant risks and rewards of ownership
        
        The customer has accepted the asset
- - - - Divided into 2
        
        Normal distinct goods and services or a bundle of goods or services
        
        A series of distinct goods or services that are substantially the same and have the same transfer pattern
      - If not distinct, the entity must combine the goods with other goods so that they become distinct