IFRS 15Chapter 7Lesson 3
Step 5 (3): point in time, acceptance, repurchase, consignment, bill-and-hold
Step 1 of 7Learning objectives
Go deeper+5 deeper insights · +1 calculation · +1 journal entry · +1 point of attention
When no over-time criterion is met, revenue is recognised on the date the customer obtains control, identified using five indicators. Several situations call for a specific analysis: the acceptance clause, the repurchase agreement (lease, financing or sale with a right of return), consignment, and bill-and-hold, which allows revenue only if four criteria are all met.
35 minNot started
Learning objectives
- Identify the date of the transfer of control using the five indicators, without treating any one of them as decisive on its own.
- Determine whether an acceptance clause defers the transfer of control.
- Classify a repurchase agreement (forward, call option, put option) as a lease, a financing or a sale with a right of return, and quantify a financing.
- Recognise a consignment and apply the four criteria of a bill-and-hold arrangement.