Syllabus F. Preparing Basic Financial Statements F2. Statements of profit or loss and other comprehensive income

F2b. Revenues - Presentation in financial statements 5 / 7

Syllabus F2b)

b) Understand how accounting concepts apply to revenue and expenses.

Presentation in financial statements

Show in the SFP as a contract liability or a receivable, depending on when paid and performed

i.e.. Paid upfront but not yet performed would be a contract liability - Dr Cash Cr Contract Liability

i.e.. Paid later but already performed - Dr Receivable Cr Revenue (see below)

Performed but not paid would be a contract receivable or asset

  1. A contract asset if the payment is conditional (on something other than time)

  2. A receivable if the payment is unconditional

Contract assets and receivables shall be accounted for in accordance with IFRS 9.


All qualitative and quantitative information about:

  • its contracts with customers;

  • the significant judgments in applying the guidance to those contracts; and

  • any assets recognised from the costs to fulfil a contract with a customer.