Clear and concise - that’s what makes your videos so useful. Many thanks for sharing.
@jonathanasogbon
2 жыл бұрын
Thank you Silvia
@AliAhmed-uf9kb
6 ай бұрын
We want ECL video please upload it
@jeetmankikar
5 ай бұрын
Silvia you are blessing on youtube! Absolutely love all your videos whichever I have gone through so far! Much love!
@rahelworku1356
2 жыл бұрын
wow amazingly you have explained the difference, also you gave us why we should not group contract assets under IFRs-9
@ricardoshillyshally4593
4 ай бұрын
What about if a company agrees to give calling and mobile data services to a customer for a period of 24 months. Would it be recorded as a receivable or a contract asset, and why?
@ricardoshillyshally4593
4 ай бұрын
In this case, the company is getting paid $25 on a monthly basis and not at the end of the service
@CPDbox
4 ай бұрын
@@ricardoshillyshally4593 Please, watch this video, I solved exactly the example with telecom company - how to account for these prepaid services when free handset is received. Your case is quite similar. Here is the video:kzitem.info/news/bejne/qGqIz59mhpamlno
@toddgilbey3979
2 жыл бұрын
Hi Silva, great tutorial as always! Is a contract asset the same as accrued income?
@mlobimkhize5444
Жыл бұрын
No, it is not. Accrued income is a trade receivable, hence dependent solely on passage of time before receiving payment. Hence not a contract asset, as defined.
@toddgilbey3979
Жыл бұрын
@@mlobimkhize5444 Cheers :)
@ANA-db9yn
2 жыл бұрын
Excellent Excellent Excellent👍
@MiddleEast_Asian-oh7cf
6 ай бұрын
hi Silvia, well informative video. please explain: Client pays ontime throgh bank loan, but tax invoice he will accept end of the project. journal Dr. Bill receivables Cr. Unbilled Revenue is it right?
@CPDbox
6 ай бұрын
I do not quite understand the situation, sorry.
@vinaykumar-177
2 жыл бұрын
Explanation is very good and interesting to watch....Thanks for these efforts👏👏
@tenayihun5704
2 жыл бұрын
I WONDER YOU for about your explanation lecture note !!!
@yasmeh3723
10 ай бұрын
Great, In Simple Words Precisely Explain
@Jouantiese
3 ай бұрын
Lucid, condensed and very understandable. Thank you.
@beyond1233
Жыл бұрын
How about if the Contract Asset turn to Trade Receivable with different currency rate. The different should be reflected in Revenue or realised foreign Exchange?
@ammarbazo1808
Жыл бұрын
Thank you. I am following you from Sudan, from Africa. A very good lecture
@ellielyndon1645
2 жыл бұрын
This is so helpful!!! I understand now. Tysm❤❤❤
@yemensport1997
2 жыл бұрын
Waiting long time for a such video. Really appreciate.
@tonyrungsiri9738
2 жыл бұрын
I am now confused with all the concept of revenue from construction contract. Your explanation does help me gain the big picture a lot!!. Thank you.
@WahidJohnnie
2 жыл бұрын
Very much helpful. I searched 15 days ago for this example and now it is appeared.
@hemanthkumar4870
2 жыл бұрын
Thank you Silvia...good explanation..
@GeriantJansen
Жыл бұрын
Is the contra accounts always , debit contract asset and credit revenue? Can it also be debit contract asset and credit to inventory?
@CPDbox
Жыл бұрын
I don't think so (answering your second question)
@rajakushwaha7824
2 жыл бұрын
Thank u. Complete clarity
@frankabacus7375
2 жыл бұрын
Excellent explanation. Thank you and please keep it up, and coming
@fareenanadeem7525
Жыл бұрын
This just made total sense! Perfect!
@rajatjain2089
2 жыл бұрын
Understand correctly. Thanks
@mnavaid8055
2 жыл бұрын
Your lectures are really much helpful Thankyou
@subasri6191
Жыл бұрын
The concept is being made to understand to the point! Thanks a lot for your wonderful videos!
@maryamamin9079
2 жыл бұрын
Thank you, Thank you Thank you, Thank you.
@paulogunwong4156
2 жыл бұрын
Excellent example! Many thanks!
@ecastilioni
Жыл бұрын
Very clear! Thank you!!! 🙂
@TheBarnwalpramod
2 жыл бұрын
Your explanation is very lucid and interesting as always. Thanks
@mnavaid8055
2 жыл бұрын
I want to be Part of your Team
@samudithrandika4876
2 жыл бұрын
Nice explanation
@beautifulquranrecitationan7034
2 жыл бұрын
To the point perfect
@mayuridhuri5004
Жыл бұрын
Well explained
@salahsaada9561
2 жыл бұрын
As always amazing Silvia, you and your CBD box is the most powerful source of explanation of IFRS. What about the cost of contract asset ( cost of sales) shouldn’t be capitalized and Jv precede the recognition of contract asset ?
@CPDbox
2 жыл бұрын
Thank you. That's something different, not the contract costs, they are rather costs to fulfil the contract.
@vinayramachandran4992
2 жыл бұрын
Excellent!!
@eslamabdelwahab-c9e
2 жыл бұрын
Brilliant
@mohammedalsayadi7131
2 жыл бұрын
great and thankful. and actually we need 1 example for healthcare entity as a client and an insurance co. as a supplier , in such case how the entries would be? hope u get my point and appreciate
@CPDbox
2 жыл бұрын
I am sorry, I don't understand the question. Maybe you could contact us via our contact form on our website. Thank you!
@christoslefkimiotis9889
2 жыл бұрын
According to IFRS 15 the 5th condition says that "Recognise revenue when a performance obligation has been met" here at 31/12 no obligation has been met (delivering the call centre) so no revenue should be recognised, at 31/12 (dr contract asset 70k cr revenue 70k) What am I missing? Thanks
@CPDbox
2 жыл бұрын
Well, we are assuming here that this project is satisfied over time, not at the point of time, and I warned you that this example is a bit unrealistic for the sake of illustration and simplicity. But yes, you are right - if the project is at the point of time, then you do not account for a contract asset and revenue. I am adding the note to the description to make it clear - thank you!
@christoslefkimiotis9889
2 жыл бұрын
@@CPDbox Thank you very much for the response. I do not think that is a so unrealistic scenario because the timing of a project is important, for example if you build a small power substation or something that takes months (and not years) to build you might find yourself in the situation that the year end is during the total duration of the contract. In that cases you only deliver at one point of time and having a year end to account for. Under IAS11 you were able to recognise revenue (more easily) regardless if you "delivered" something or not and only having the funds/purpose to complete the project was the constraint to do so; IFRS15 more or less says that this is not the way that should recognise revenue.Thanks
@andisupri1360
2 жыл бұрын
Is contract asset the same with accrued revenue?
@CPDbox
2 жыл бұрын
If that deferred revenue is specifically related to the contract, then I would say yes.
@jasontsui2256
2 жыл бұрын
What if at 31 Dec the client makes a payment to the entity of CU100,000 suddenly? Is the journal entry as " Dr Cash and Cr Contract liability" cos the condition has not been met yet and company can't bill the client yet?
@CPDbox
2 жыл бұрын
So the client does not pay in line with the contract, but up front prior agreed date of payment - is that what you mean? This is highly unlikely without further communication between the supplier and the client and to me, it does not seem OK to keep recognizing contract asset AND contract liability from the same contract, because that's something called "window dressing" (inflating the balance sheet on both assets and liabilites). In this case I would re-arrange the payment terms with the client and reduce a contract asset.
@jasontsui2256
2 жыл бұрын
@@CPDbox Yes that's what I mean client paying up front prior to agreed payment date. Thanks a lot!!
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