a) Explain and apply the principles of recognition of revenue:
(i) Identification of contracts
(ii) Identification of performance obligations
(iii) Determination of transaction price
(iv) Allocation of the price to performance obligations
(v) Recognition of revenue when/as performance obligations are satisfied.
b) Explain and apply the criteria for recognising revenue generated from contracts where performance obligations are satisfied over time or at a point in time.
c) Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation.
d) Explain and apply the criteria for the recognition of contract costs.
e) Apply the principles of recognition of revenue, and specifically account for the following types of transaction:
i) principal versus agent
ii) repurchase agreements
iii) bill and hold arrangements iv) consignments
f) Prepare financial statement extracts for contracts where performance obligations are satisfied over time.