Exploring Revenue Recognition with IFRS $15$

This activity focuses on the primary accounting issues related to revenue recognition and their connection to International Financial Reporting Standard $15($IFRS $15).$ We will examine the necessity of combining distinct contracts and provide examples to illustrate how IFRS $15$ applies to such situations. Additionally, we will compare revenue recognition criteria for product sales and service provision. Lastly, we will explore the disclosure objectives and general requirements outlined in IFRS $15.$ By participating in this activity, you will gain insights into revenue recognition complexities and the application of IFRS $15$ in various scenarios.

Instructions:

Answer the following questions in a word document:

What are the primary accounting issues associated with revenue recognition, and how do they relate to IFRS $15?$

Why might combining distinct contracts be necessary? Provide two examples and explain how IFRS $15$ applies to these transactions.

Compare and contrast the criteria for revenue recognition for the sale of products and the provision of services.

Describe the IFRS $15$ disclosure objectives and general requirements.