Question #1

IFRS 15 Revenue from Contracts with Customers was issued in September 2015 and applies to accounting periods beginning on or after 1 January 2018. IFRS 15 replaces IAS 11- Construction Contracts and IAS 18 Revenue. IFRS 15 contains principles which underpin the timing of the recognition of revenue from contracts with customers and the measurement of that revenue.

Required:

Explain the principles underpinning the TIMING of revenue recognition and the MEASUREMENT of that revenue which are outlines in IFRS 15. You should provide examples of revenue transactions to support your explanations of these key principles. (12 marks)

(b) Delta prepares financial statements to 30 September each year. Notes 1 and 2 provide financial information on revenue transactions relevant to the year ended 30 September 2020.