Identification of a transaction, Sale of goods, Provision of services, Interest, royalties and dividends, Disclosure - International Financial Reporting Standards

Transaction Identification

A conditional interest rate is the value most clearly defined:

1) from the prevailing rate for a similar financial instrument of the issuer with a similar credit rating or

2) from the interest rate by which the nominal amount of the financial instrument is discounted to the current prices of goods or services for cash sales.

10.10. To determine the transactions that result in revenue, the following rules are used:

• if the sales price of the product includes the amount for subsequent maintenance, the recognition of this amount is postponed for the period during which the service is provided;

• If, upon the sale of the goods, the company immediately signs a contract for the repurchase of these goods at a later date, both operations are treated as a single operation.

Sale of goods

10.11. Revenue from the sale of goods is recognized in cases where:

• significant risks and rewards of ownership of goods are transferred to the buyer;

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• The company is no longer involved in property management, nor does it exercise effective control over the goods sold;

• the amount of revenue can be measured reliably;

• Probable economic benefit for the company as a result of this operation;

• The cost of the operation can be measured reliably.

10.12. Uncertainty regarding the collection of the amount already included in the revenue is considered as an expense, rather than a correction of revenue.

10.13. If the costs can not be measured reliably, the revenue can not be recognized. Reimbursement already received for sale is deferred as an obligation until recognition of revenue occurs.

10.14. If the result of an operation involving the provision of services can be reliably estimated, revenue is recognized taking into account the stage of completion of the transaction at the balance sheet date. You can evaluate the result if:

• the amount of revenue can be measured reliably;

• Probable economic benefit for the company as a result of this operation;

• You can reliably determine the stage of completeness;

• The costs incurred and the costs of completing the operation are determined reliably.

Service Delivery

10.15. If the result of an operation involving the provision of services can not be reliably estimated, the proceeds should be recognized only in the amount of the reimbursable costs.

10.16. The stage of completeness of an operation can be determined using various methods similar to those described in IFRS 11 (for example, the relationship between the incurred and the total estimated costs).

Interest, royalties and dividends

10.17. If revenue arises from the use of other assets by interest bearing companies, royalties and dividends, such revenue should be recognized as follows:

• interest - on a time-based basis (not yet paid principal, interest, time);

• royalties - at the time of charging (in accordance with the contents of the contract);

• dividends - if the shareholder has a right to receive payments.


10.18. The company must disclose the following information.

1. Accounting policy:

• Revenue estimates used in the company;

• Revenue recognition methods used;

• for services - the method for determining the stage of completion.

2. The amounts of significant revenue categories:

• sale of goods;

• service delivery;

• interest;

• royalties;

• dividends.

3. The amount of revenue that is recognized as the result of the exchange of goods or services.

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