•Explain and apply the principles of revenue recognition:
i. Identification of contracts
ii. Identification of performance obligations
iii. Determination of transaction price
iv. Allocation of the price to the performance obligations
v. Recognition of revenue when/as performance obligations are satisfied
• Describe and apply the acceptable methods for measuring progress towards complete satisfaction of performance obligations.
• Explain and apply the criteria for the recognition of contract costs
• Specifically account for the following types of transactions:
(i) Principal versus agent;
(ii) Repurchase agreements;
(iii)Bill and hold arrangements
(iv)Consignment agreements
• Account for different types of consideration (including variable consideration) and where a significant financing component exists in the contract.
• Prepare financial statement extracts for contracts with multiple performance obligations, some of which are satisfied over
time and some at a point in time.