Question

Under IFRS, what criteria do you use for revenue recognition? Which paragraph in IFRS do they talk about non-refundable upfront deposits? What should you go in regards to the revenue?

Answer 1

Under IFRS, revenue recognition criteria are outlined in IFRS 15. Non-refundable upfront deposits are discussed in IFRS 15.BC39. It's important to apply the criteria for revenue recognition according to IFRS 15.

Step-by-step explanation:

Under IFRS (International Financial Reporting Standards), the revenue recognition criteria are outlined in IFRS 15 - Revenue from Contracts with Customers. The criteria for revenue recognition include:

• Identification of the contract with a customer
• Identification of the separate performance obligations
• Determination of the transaction price
• Allocation of the transaction price to the separate performance obligations
• Recognition of revenue when the performance obligations are satisfied

The paragraph in IFRS that discusses non-refundable upfront deposits is IFRS 15.BC39. This paragraph explains that non-refundable upfront fees or prepayments should be recognized as revenue when the entity satisfies its performance obligations under the contract.

When it comes to revenue recognition, it's important to follow the specific criteria outlined in IFRS 15 and apply them to each contract and transaction to ensure accurate and appropriate recognition of revenue.