IAS 18 | ED Revenue |
1. Timing of revenue recognition is based on transfer of significant risks and rewards to customer | 1. Timing of revenue recognition is based on transfer of control to customer |
2. Warranty cost is treated as a provision | 2. Warranty is part of performance obligation |
3. No guidance on the estimation price for multiple element sales | 3. Clearer guidance on measurement of items in a multiple element sales |
4. Based on full performance of seller | 4. Contract based i.e. rights and obligation being created |
5. Revenue for sale of goods is based on completed contract basis | 5. Percentage completion is used if control is transferred continuously |
6. Based on the view of seller i.e. performance obligation already fulfilled | 6. Buyer’s view point is more critical i.e. can the seller claim from buyer (rights) and performance obligation completed |
7. Advance cash received is treated as deferred income | 7. Both the advance cash received and amount receivable recognised as performance obligation |
IAS 39 | IFRS 9 |
1. 4 Classification: FVTPL AFS L & R HTM | 1. 2 Classification: Debt Instrument Equity instrument |
2. Flexibility in classifying loan receivable | 2. Loan receivable can be classified to amortised cost only if met 2 conditions |
3. No preference on FV or Amortised cost | 3. Preference given to FV as compared to amortised cost |
4. Loan receivable can be classified as either AFS or HTM | 4. AFS and HTM has been abolished |
5. Equity instrument can be classified as FVTPL or AFS | 5. Equity instrument can be classified as FVTPL or FVTOCI |
6. Embedded derivatives separated if host contract not closely related to embedded derivative | 6. Embedded derivative separated based on host contract’s cash flows characteristics constitute cash payment for principal and interest |
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