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PFRS 15 Exam Latest Update
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PFRS 15 Exam Latest Updateenumerate the 5 step model of revenue recognition - Answer 1. Identify the contract
with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations
5. Recognize revenue when a performance obligation is satisfied
scope of PFRS 15 - Answer a. Lease Contracts
b. Insurance Contracts
c. Financial Instruments; and
d. Non-Monetary Exchanges between the entities in the same line
Revenue - Answer is measured at the amount of transaction price allocated to the
performance obligation satisfied
PFRS 15 - Answer Revenue from Contracts with Customers
Contract costs include: - Answer a. Incremental Costs of Obtaining a contract
b. Costs to fulfill a contract
objective of PFRS 15 - Answer an entity shall apply to report useful information to users
of financial statements about the nature, amount, timing, and uncertainty of revenue and
cash flows arising from a contract with customer
Incremental Costs of Obtaining a contract - Answer recognized as asset if they are
expected to be recovered
Costs to fulfill a contract - Answer a. directly related to a contract
b. generate or enhance resources
c. recoverable
Contract Liability - Answer recognized when consideration is received or becomes due
before goods or services are transferred to the customer
Contract Asset - Answer recognized after goods or services are transferred to the
customer but the right to consideration is conditional (conditioned)
Receivable - Answer recognized after goods or services are transferred to the customer
and the right to consideration is unconditional
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