Timing of revenue recognition and contract balances

• Performance obligation followed (goods or services, place and manner of performance, termination and payment clauses)

  TextRequired

• Transaction price allocated to the obligation (after any modification)

  NumberRequired

  10,000,000

• Total costs expected to satisfy the obligation (updated budget)

  Number

  8,000,000

• Costs incurred at the reporting date that depict the entity's performance

  Number

  2,000,000

  Exclude goods or services whose control is not transferred to the customer (para. 42). This workpaper does not restate the details on costs that do not depict performance.

• Cumulative revenue recognised in prior periods

  NumberRequired

  0

• Cumulative amounts invoiced or received at the reporting date

  NumberRequired

  2,000,000

• Amounts invoiced in the period (right become unconditional)

  Number

  2,000,000

• Advance received before the transfer of goods or services

  Number

• Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

  Number

• Contract modification (change in scope or price, approval, goods or services added, agreed price)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §31IFRS 15 §32IFRS 15 §33IFRS 15 §35IFRS 15 §36IFRS 15 §37IFRS 15 §B3IFRS 15 §B4IFRS 15 §B5IFRS 15IFRS 15IFRS 15 §B8IFRS 15 §B9IFRS 15 §B10IFRS 15 §B11IFRS 15 §B12IFRS 15 §B13

• Criteria examined (one is enough)

  ChecklistRequired

  • Control: ability to direct the use of the asset and obtain substantially all of the remaining benefits
  • The customer simultaneously receives and consumes the benefits as the entity performs (another entity would not need to re-perform the work completed)
  • The performance creates or enhances an asset (tangible or intangible) that the customer controls as it is created
  • Asset with no alternative use: substantive contractual restriction or practical limitation (significant economic losses), assessed at inception
  • Enforceable right, at all times, to compensation approximating the selling price of the performance completed (costs incurred plus a reasonable margin, for example) if terminated for reasons other than the entity's failure to perform
  • Determination made at inception; if no criterion is met, obligation satisfied at a point in time

IFRS 15IFRS 15 §38

• Indicators of the transfer of control

  Checklist

  • Entity's present right to payment
  • Legal title held by the customer
  • Physical possession by the customer
  • Significant risks and rewards of ownership transferred to the customer
  • Customer acceptance of the asset
  • Any repurchase agreement taken into account (“Specific arrangements”)

IFRS 15 §39IFRS 15IFRS 15IFRS 15IFRS 15 §43IFRS 15 §44IFRS 15 §45IFRS 15IFRS 15IFRS 15 §B18

• Measurement method examined

  Checklist

  • Objective: depict the entity's performance in transferring control
  • A single method for each obligation, applied consistently and remeasured at each reporting date
  • Output method (value transferred) or input method (efforts expended), depending on the nature of the good or service
  • Goods or services whose control is not transferred excluded from the measure
  • Update of progress: change in accounting estimate (IAS 8)
  • Progress reasonably measurable; otherwise, revenue limited to the costs incurred that are expected to be recovered

• Method for measuring progress retained

  ChoiceRequired

  Input: costs incurred relative to total expected costs

  Input: costs incurred relative to total expected costs / Input: other measure (hours, time elapsed) / Output (surveys, milestones, units delivered) / Revenue to the extent of costs incurred (progress not reasonably measurable) / Not applicable: obligation satisfied at a point in time

  The choice of method is a judgement based on the nature of the good or service (para. 41); the calculation below illustrates the cost-to-cost method. For another method, enter the corresponding measures instead of costs.

IFRS 15 §18IFRS 15 §19IFRS 15 §20IFRS 15 §21

• Analysis of the modification

  Checklist

  • Change in scope or price approved by the parties (even implicitly); otherwise, existing contract unchanged
  • Scope approved without a price set: change estimated as variable consideration with the constraint
  • Separate contract: addition of distinct goods or services at a price reflecting their stand-alone selling prices
  • Remaining goods distinct: termination and new contract, prospectively
  • Remaining goods not distinct from a partially satisfied obligation: cumulative catch-up adjustment to revenue

IFRS 15 §105IFRS 15 §106IFRS 15 §107IFRS 15 §108

• Presentation examined

  ChecklistRequired

  • Contract presented as a contract asset or liability depending on the relationship between performance and payment; unconditional right presented as a receivable
  • Payment received or due before the transfer: contract liability
  • Performance before payment or due date: contract asset (right conditional on something other than the passage of time)
  • Receivable: right that is conditional only on the passage of time (IFRS 9)

IFRS 15 §21IFRS 15 §39IFRS 15IFRS 15 §B18IFRS 15 §105IFRS 15 §106IFRS 15 §107

• Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs)

  Calculation

  2,500,000

  Transaction price allocated to the obligation (after any modification) ; Total costs expected to satisfy the obligation (updated budget) ; Costs incurred at the reporting date that depict the entity's performance

  The calculation applies to the price and cumulative costs the generic engine amount × units / reference units. After a modification accounted for as a cumulative catch-up (para. 21), enter the revised price and budget: the difference with prior revenue includes the catch-up.

• Revenue for the period (cumulative revenue − revenue of prior periods)

  Calculation

  2,500,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative revenue recognised in prior periods

• Contract asset at the reporting date (cumulative revenue − amounts invoiced, if positive)

  Calculation

  500,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

• Contract liability at the reporting date (amounts invoiced − cumulative revenue, if positive)

  Calculation

  0

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

  Teaching assumption: the amounts invoiced are due or collected, so that the net position of the contract gives a contract asset or a contract liability (para. 105 to 107); amounts invoiced and not collected remain receivables.

• Revenue for the period measured by progress

  Entry

  Account	Debit	Credit
  Contract asset	2,500,000
  Revenue		2,500,000

  Teaching assumption: revenue for the period is first recorded as a contract asset, then invoicing reclassifies it as a receivable; when there is an advance, revenue first reduces the contract liability.

• Invoicing: reclassification as a receivable

  Entry

  Account	Debit	Credit
  Receivable	2,000,000
  Contract asset		2,000,000

• Advance received before the transfer

  Entry

  Debit Cash ← Advance received before the transfer of goods or services ; Credit Contract liability ← Advance received before the transfer of goods or services

• Revenue from an obligation satisfied at a point in time, unconditional right

  Entry

  Debit Receivable ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant ; Credit Revenue ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

IFRS 15 §18IFRS 15 §20IFRS 15 §21IFRS 15 §32IFRS 15 §35IFRS 15 §38

• Manner in which the obligation is satisfied

  JudgmentRequired

  Over time: asset controlled by the customer

  Over time: simultaneous receipt and consumption / Over time: asset controlled by the customer / Over time: no alternative use and enforceable right to payment / At a point in time: date of transfer of control according to the indicators

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Accounting for the modification

  JudgmentRequired

  No approved modification

  Separate contract / Termination and new contract (prospective) / Cumulative catch-up adjustment to revenue / Combination of both approaches / No approved modification

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The manner of satisfaction is documentedPass
• The accounting for modifications is documentedPass
• The measurement method is statedPass
• Cumulative revenue equals prior revenue plus revenue for the periodPass
• The revenue entry is balancedPass
• The invoicing entry is balancedPass
• The advance entry is balancedNot evaluated
• The point-in-time revenue entry is balancedNot evaluated

Assets

2,500,000

Liabilities

0

Profit or loss

2,500,000

OCI

0

Equity

2,500,000

• Performance obligation followed (goods or services, place and manner of performance, termination and payment clauses)

  TextRequired

• Transaction price allocated to the obligation (after any modification)

  NumberRequired

  11,200,000

• Total costs expected to satisfy the obligation (updated budget)

  Number

  8,800,000

• Costs incurred at the reporting date that depict the entity's performance

  Number

  5,500,000

  Exclude goods or services whose control is not transferred to the customer (para. 42). This workpaper does not restate the details on costs that do not depict performance.

• Cumulative revenue recognised in prior periods

  NumberRequired

  2,500,000

• Cumulative amounts invoiced or received at the reporting date

  NumberRequired

  6,000,000

• Amounts invoiced in the period (right become unconditional)

  Number

  4,000,000

• Advance received before the transfer of goods or services

  Number

• Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

  Number

• Contract modification (change in scope or price, approval, goods or services added, agreed price)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §31IFRS 15 §32IFRS 15 §33IFRS 15 §35IFRS 15 §36IFRS 15 §37IFRS 15 §B3IFRS 15 §B4IFRS 15 §B5IFRS 15IFRS 15IFRS 15 §B8IFRS 15 §B9IFRS 15 §B10IFRS 15 §B11IFRS 15 §B12IFRS 15 §B13

• Criteria examined (one is enough)

  ChecklistRequired

  • Control: ability to direct the use of the asset and obtain substantially all of the remaining benefits
  • The customer simultaneously receives and consumes the benefits as the entity performs (another entity would not need to re-perform the work completed)
  • The performance creates or enhances an asset (tangible or intangible) that the customer controls as it is created
  • Asset with no alternative use: substantive contractual restriction or practical limitation (significant economic losses), assessed at inception
  • Enforceable right, at all times, to compensation approximating the selling price of the performance completed (costs incurred plus a reasonable margin, for example) if terminated for reasons other than the entity's failure to perform
  • Determination made at inception; if no criterion is met, obligation satisfied at a point in time

IFRS 15IFRS 15 §38

• Indicators of the transfer of control

  Checklist

  • Entity's present right to payment
  • Legal title held by the customer
  • Physical possession by the customer
  • Significant risks and rewards of ownership transferred to the customer
  • Customer acceptance of the asset
  • Any repurchase agreement taken into account (“Specific arrangements”)

IFRS 15 §39IFRS 15IFRS 15IFRS 15IFRS 15 §43IFRS 15 §44IFRS 15 §45IFRS 15IFRS 15IFRS 15 §B18

• Measurement method examined

  Checklist

  • Objective: depict the entity's performance in transferring control
  • A single method for each obligation, applied consistently and remeasured at each reporting date
  • Output method (value transferred) or input method (efforts expended), depending on the nature of the good or service
  • Goods or services whose control is not transferred excluded from the measure
  • Update of progress: change in accounting estimate (IAS 8)
  • Progress reasonably measurable; otherwise, revenue limited to the costs incurred that are expected to be recovered

• Method for measuring progress retained

  ChoiceRequired

  Input: costs incurred relative to total expected costs

  Input: costs incurred relative to total expected costs / Input: other measure (hours, time elapsed) / Output (surveys, milestones, units delivered) / Revenue to the extent of costs incurred (progress not reasonably measurable) / Not applicable: obligation satisfied at a point in time

  The choice of method is a judgement based on the nature of the good or service (para. 41); the calculation below illustrates the cost-to-cost method. For another method, enter the corresponding measures instead of costs.

IFRS 15 §18IFRS 15 §19IFRS 15 §20IFRS 15 §21

• Analysis of the modification

  Checklist

  • Change in scope or price approved by the parties (even implicitly); otherwise, existing contract unchanged
  • Scope approved without a price set: change estimated as variable consideration with the constraint
  • Separate contract: addition of distinct goods or services at a price reflecting their stand-alone selling prices
  • Remaining goods distinct: termination and new contract, prospectively
  • Remaining goods not distinct from a partially satisfied obligation: cumulative catch-up adjustment to revenue

IFRS 15 §105IFRS 15 §106IFRS 15 §107IFRS 15 §108

• Presentation examined

  ChecklistRequired

  • Contract presented as a contract asset or liability depending on the relationship between performance and payment; unconditional right presented as a receivable
  • Payment received or due before the transfer: contract liability
  • Performance before payment or due date: contract asset (right conditional on something other than the passage of time)
  • Receivable: right that is conditional only on the passage of time (IFRS 9)

IFRS 15 §21IFRS 15 §39IFRS 15IFRS 15 §B18IFRS 15 §105IFRS 15 §106IFRS 15 §107

• Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs)

  Calculation

  7,000,000

  Transaction price allocated to the obligation (after any modification) ; Total costs expected to satisfy the obligation (updated budget) ; Costs incurred at the reporting date that depict the entity's performance

  The calculation applies to the price and cumulative costs the generic engine amount × units / reference units. After a modification accounted for as a cumulative catch-up (para. 21), enter the revised price and budget: the difference with prior revenue includes the catch-up.

• Revenue for the period (cumulative revenue − revenue of prior periods)

  Calculation

  4,500,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative revenue recognised in prior periods

• Contract asset at the reporting date (cumulative revenue − amounts invoiced, if positive)

  Calculation

  1,000,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

• Contract liability at the reporting date (amounts invoiced − cumulative revenue, if positive)

  Calculation

  0

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

  Teaching assumption: the amounts invoiced are due or collected, so that the net position of the contract gives a contract asset or a contract liability (para. 105 to 107); amounts invoiced and not collected remain receivables.

• Revenue for the period measured by progress

  Entry

  Account	Debit	Credit
  Contract asset	4,500,000
  Revenue		4,500,000

  Teaching assumption: revenue for the period is first recorded as a contract asset, then invoicing reclassifies it as a receivable; when there is an advance, revenue first reduces the contract liability.

• Invoicing: reclassification as a receivable

  Entry

  Account	Debit	Credit
  Receivable	4,000,000
  Contract asset		4,000,000

• Advance received before the transfer

  Entry

  Debit Cash ← Advance received before the transfer of goods or services ; Credit Contract liability ← Advance received before the transfer of goods or services

• Revenue from an obligation satisfied at a point in time, unconditional right

  Entry

  Debit Receivable ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant ; Credit Revenue ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

IFRS 15 §18IFRS 15 §20IFRS 15 §21IFRS 15 §32IFRS 15 §35IFRS 15 §38

• Manner in which the obligation is satisfied

  JudgmentRequired

  Over time: asset controlled by the customer

  Over time: simultaneous receipt and consumption / Over time: asset controlled by the customer / Over time: no alternative use and enforceable right to payment / At a point in time: date of transfer of control according to the indicators

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Accounting for the modification

  JudgmentRequired

  Cumulative catch-up adjustment to revenue

  Separate contract / Termination and new contract (prospective) / Cumulative catch-up adjustment to revenue / Combination of both approaches / No approved modification

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The manner of satisfaction is documentedPass
• The accounting for modifications is documentedPass
• The measurement method is statedPass
• Cumulative revenue equals prior revenue plus revenue for the periodPass
• The revenue entry is balancedPass
• The invoicing entry is balancedPass
• The advance entry is balancedNot evaluated
• The point-in-time revenue entry is balancedNot evaluated

Assets

4,500,000

Liabilities

0

Profit or loss

4,500,000

OCI

0

Equity

4,500,000

• Performance obligation followed (goods or services, place and manner of performance, termination and payment clauses)

  TextRequired

• Transaction price allocated to the obligation (after any modification)

  NumberRequired

  4,700,000

• Total costs expected to satisfy the obligation (updated budget)

  Number

  4,000,000

• Costs incurred at the reporting date that depict the entity's performance

  Number

  2,800,000

  Exclude goods or services whose control is not transferred to the customer (para. 42). This workpaper does not restate the details on costs that do not depict performance.

• Cumulative revenue recognised in prior periods

  NumberRequired

  0

• Cumulative amounts invoiced or received at the reporting date

  NumberRequired

  1,692,000

• Amounts invoiced in the period (right become unconditional)

  Number

  1,692,000

• Advance received before the transfer of goods or services

  Number

• Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

  Number

• Contract modification (change in scope or price, approval, goods or services added, agreed price)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §31IFRS 15 §32IFRS 15 §33IFRS 15 §35IFRS 15 §36IFRS 15 §37IFRS 15 §B3IFRS 15 §B4IFRS 15 §B5IFRS 15IFRS 15IFRS 15 §B8IFRS 15 §B9IFRS 15 §B10IFRS 15 §B11IFRS 15 §B12IFRS 15 §B13

• Criteria examined (one is enough)

  ChecklistRequired

  • Control: ability to direct the use of the asset and obtain substantially all of the remaining benefits
  • The customer simultaneously receives and consumes the benefits as the entity performs (another entity would not need to re-perform the work completed)
  • The performance creates or enhances an asset (tangible or intangible) that the customer controls as it is created
  • Asset with no alternative use: substantive contractual restriction or practical limitation (significant economic losses), assessed at inception
  • Enforceable right, at all times, to compensation approximating the selling price of the performance completed (costs incurred plus a reasonable margin, for example) if terminated for reasons other than the entity's failure to perform
  • Determination made at inception; if no criterion is met, obligation satisfied at a point in time

IFRS 15IFRS 15 §38

• Indicators of the transfer of control

  Checklist

  • Entity's present right to payment
  • Legal title held by the customer
  • Physical possession by the customer
  • Significant risks and rewards of ownership transferred to the customer
  • Customer acceptance of the asset
  • Any repurchase agreement taken into account (“Specific arrangements”)

IFRS 15 §39IFRS 15IFRS 15IFRS 15IFRS 15 §43IFRS 15 §44IFRS 15 §45IFRS 15IFRS 15IFRS 15 §B18

• Measurement method examined

  Checklist

  • Objective: depict the entity's performance in transferring control
  • A single method for each obligation, applied consistently and remeasured at each reporting date
  • Output method (value transferred) or input method (efforts expended), depending on the nature of the good or service
  • Goods or services whose control is not transferred excluded from the measure
  • Update of progress: change in accounting estimate (IAS 8)
  • Progress reasonably measurable; otherwise, revenue limited to the costs incurred that are expected to be recovered

• Method for measuring progress retained

  ChoiceRequired

  Input: costs incurred relative to total expected costs

  Input: costs incurred relative to total expected costs / Input: other measure (hours, time elapsed) / Output (surveys, milestones, units delivered) / Revenue to the extent of costs incurred (progress not reasonably measurable) / Not applicable: obligation satisfied at a point in time

  The choice of method is a judgement based on the nature of the good or service (para. 41); the calculation below illustrates the cost-to-cost method. For another method, enter the corresponding measures instead of costs.

IFRS 15 §18IFRS 15 §19IFRS 15 §20IFRS 15 §21

• Analysis of the modification

  Checklist

  • Change in scope or price approved by the parties (even implicitly); otherwise, existing contract unchanged
  • Scope approved without a price set: change estimated as variable consideration with the constraint
  • Separate contract: addition of distinct goods or services at a price reflecting their stand-alone selling prices
  • Remaining goods distinct: termination and new contract, prospectively
  • Remaining goods not distinct from a partially satisfied obligation: cumulative catch-up adjustment to revenue

IFRS 15 §105IFRS 15 §106IFRS 15 §107IFRS 15 §108

• Presentation examined

  ChecklistRequired

  • Contract presented as a contract asset or liability depending on the relationship between performance and payment; unconditional right presented as a receivable
  • Payment received or due before the transfer: contract liability
  • Performance before payment or due date: contract asset (right conditional on something other than the passage of time)
  • Receivable: right that is conditional only on the passage of time (IFRS 9)

IFRS 15 §21IFRS 15 §39IFRS 15IFRS 15 §B18IFRS 15 §105IFRS 15 §106IFRS 15 §107

• Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs)

  Calculation

  3,290,000

  Transaction price allocated to the obligation (after any modification) ; Total costs expected to satisfy the obligation (updated budget) ; Costs incurred at the reporting date that depict the entity's performance

  The calculation applies to the price and cumulative costs the generic engine amount × units / reference units. After a modification accounted for as a cumulative catch-up (para. 21), enter the revised price and budget: the difference with prior revenue includes the catch-up.

• Revenue for the period (cumulative revenue − revenue of prior periods)

  Calculation

  3,290,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative revenue recognised in prior periods

• Contract asset at the reporting date (cumulative revenue − amounts invoiced, if positive)

  Calculation

  1,598,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

• Contract liability at the reporting date (amounts invoiced − cumulative revenue, if positive)

  Calculation

  0

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

  Teaching assumption: the amounts invoiced are due or collected, so that the net position of the contract gives a contract asset or a contract liability (para. 105 to 107); amounts invoiced and not collected remain receivables.

• Revenue for the period measured by progress

  Entry

  Account	Debit	Credit
  Contract asset	3,290,000
  Revenue		3,290,000

  Teaching assumption: revenue for the period is first recorded as a contract asset, then invoicing reclassifies it as a receivable; when there is an advance, revenue first reduces the contract liability.

• Invoicing: reclassification as a receivable

  Entry

  Account	Debit	Credit
  Receivable	1,692,000
  Contract asset		1,692,000

• Advance received before the transfer

  Entry

  Debit Cash ← Advance received before the transfer of goods or services ; Credit Contract liability ← Advance received before the transfer of goods or services

• Revenue from an obligation satisfied at a point in time, unconditional right

  Entry

  Debit Receivable ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant ; Credit Revenue ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

IFRS 15 §18IFRS 15 §20IFRS 15 §21IFRS 15 §32IFRS 15 §35IFRS 15 §38

• Manner in which the obligation is satisfied

  JudgmentRequired

  Over time: no alternative use and enforceable right to payment

  Over time: simultaneous receipt and consumption / Over time: asset controlled by the customer / Over time: no alternative use and enforceable right to payment / At a point in time: date of transfer of control according to the indicators

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Accounting for the modification

  JudgmentRequired

  No approved modification

  Separate contract / Termination and new contract (prospective) / Cumulative catch-up adjustment to revenue / Combination of both approaches / No approved modification

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The manner of satisfaction is documentedPass
• The accounting for modifications is documentedPass
• The measurement method is statedPass
• Cumulative revenue equals prior revenue plus revenue for the periodPass
• The revenue entry is balancedPass
• The invoicing entry is balancedPass
• The advance entry is balancedNot evaluated
• The point-in-time revenue entry is balancedNot evaluated

Assets

3,290,000

Liabilities

0

Profit or loss

3,290,000

OCI

0

Equity

3,290,000

• Performance obligation followed (goods or services, place and manner of performance, termination and payment clauses)

  TextRequired

• Transaction price allocated to the obligation (after any modification)

  NumberRequired

  3,100,000

• Total costs expected to satisfy the obligation (updated budget)

  Number

  2,500,000

• Costs incurred at the reporting date that depict the entity's performance

  Number

  1,875,000

  Exclude goods or services whose control is not transferred to the customer (para. 42). This workpaper does not restate the details on costs that do not depict performance.

• Cumulative revenue recognised in prior periods

  NumberRequired

  650,000

• Cumulative amounts invoiced or received at the reporting date

  NumberRequired

  1,970,000

• Amounts invoiced in the period (right become unconditional)

  Number

  1,450,000

• Advance received before the transfer of goods or services

  Number

• Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

  Number

• Contract modification (change in scope or price, approval, goods or services added, agreed price)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §31IFRS 15 §32IFRS 15 §33IFRS 15 §35IFRS 15 §36IFRS 15 §37IFRS 15 §B3IFRS 15 §B4IFRS 15 §B5IFRS 15IFRS 15IFRS 15 §B8IFRS 15 §B9IFRS 15 §B10IFRS 15 §B11IFRS 15 §B12IFRS 15 §B13

• Criteria examined (one is enough)

  ChecklistRequired

  • Control: ability to direct the use of the asset and obtain substantially all of the remaining benefits
  • The customer simultaneously receives and consumes the benefits as the entity performs (another entity would not need to re-perform the work completed)
  • The performance creates or enhances an asset (tangible or intangible) that the customer controls as it is created
  • Asset with no alternative use: substantive contractual restriction or practical limitation (significant economic losses), assessed at inception
  • Enforceable right, at all times, to compensation approximating the selling price of the performance completed (costs incurred plus a reasonable margin, for example) if terminated for reasons other than the entity's failure to perform
  • Determination made at inception; if no criterion is met, obligation satisfied at a point in time

IFRS 15IFRS 15 §38

• Indicators of the transfer of control

  Checklist

  • Entity's present right to payment
  • Legal title held by the customer
  • Physical possession by the customer
  • Significant risks and rewards of ownership transferred to the customer
  • Customer acceptance of the asset
  • Any repurchase agreement taken into account (“Specific arrangements”)

IFRS 15 §39IFRS 15IFRS 15IFRS 15IFRS 15 §43IFRS 15 §44IFRS 15 §45IFRS 15IFRS 15IFRS 15 §B18

• Measurement method examined

  Checklist

  • Objective: depict the entity's performance in transferring control
  • A single method for each obligation, applied consistently and remeasured at each reporting date
  • Output method (value transferred) or input method (efforts expended), depending on the nature of the good or service
  • Goods or services whose control is not transferred excluded from the measure
  • Update of progress: change in accounting estimate (IAS 8)
  • Progress reasonably measurable; otherwise, revenue limited to the costs incurred that are expected to be recovered

• Method for measuring progress retained

  ChoiceRequired

  Input: costs incurred relative to total expected costs

  Input: costs incurred relative to total expected costs / Input: other measure (hours, time elapsed) / Output (surveys, milestones, units delivered) / Revenue to the extent of costs incurred (progress not reasonably measurable) / Not applicable: obligation satisfied at a point in time

  The choice of method is a judgement based on the nature of the good or service (para. 41); the calculation below illustrates the cost-to-cost method. For another method, enter the corresponding measures instead of costs.

IFRS 15 §18IFRS 15 §19IFRS 15 §20IFRS 15 §21

• Analysis of the modification

  Checklist

  • Change in scope or price approved by the parties (even implicitly); otherwise, existing contract unchanged
  • Scope approved without a price set: change estimated as variable consideration with the constraint
  • Separate contract: addition of distinct goods or services at a price reflecting their stand-alone selling prices
  • Remaining goods distinct: termination and new contract, prospectively
  • Remaining goods not distinct from a partially satisfied obligation: cumulative catch-up adjustment to revenue

IFRS 15 §105IFRS 15 §106IFRS 15 §107IFRS 15 §108

• Presentation examined

  ChecklistRequired

  • Contract presented as a contract asset or liability depending on the relationship between performance and payment; unconditional right presented as a receivable
  • Payment received or due before the transfer: contract liability
  • Performance before payment or due date: contract asset (right conditional on something other than the passage of time)
  • Receivable: right that is conditional only on the passage of time (IFRS 9)

IFRS 15 §21IFRS 15 §39IFRS 15IFRS 15 §B18IFRS 15 §105IFRS 15 §106IFRS 15 §107

• Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs)

  Calculation

  2,325,000

  Transaction price allocated to the obligation (after any modification) ; Total costs expected to satisfy the obligation (updated budget) ; Costs incurred at the reporting date that depict the entity's performance

  The calculation applies to the price and cumulative costs the generic engine amount × units / reference units. After a modification accounted for as a cumulative catch-up (para. 21), enter the revised price and budget: the difference with prior revenue includes the catch-up.

• Revenue for the period (cumulative revenue − revenue of prior periods)

  Calculation

  1,675,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative revenue recognised in prior periods

• Contract asset at the reporting date (cumulative revenue − amounts invoiced, if positive)

  Calculation

  355,000

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

• Contract liability at the reporting date (amounts invoiced − cumulative revenue, if positive)

  Calculation

  0

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

  Teaching assumption: the amounts invoiced are due or collected, so that the net position of the contract gives a contract asset or a contract liability (para. 105 to 107); amounts invoiced and not collected remain receivables.

• Revenue for the period measured by progress

  Entry

  Account	Debit	Credit
  Contract asset	1,675,000
  Revenue		1,675,000

  Teaching assumption: revenue for the period is first recorded as a contract asset, then invoicing reclassifies it as a receivable; when there is an advance, revenue first reduces the contract liability.

• Invoicing: reclassification as a receivable

  Entry

  Account	Debit	Credit
  Receivable	1,450,000
  Contract asset		1,450,000

• Advance received before the transfer

  Entry

  Debit Cash ← Advance received before the transfer of goods or services ; Credit Contract liability ← Advance received before the transfer of goods or services

• Revenue from an obligation satisfied at a point in time, unconditional right

  Entry

  Debit Receivable ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant ; Credit Revenue ← Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

IFRS 15 §18IFRS 15 §20IFRS 15 §21IFRS 15 §32IFRS 15 §35IFRS 15 §38

• Manner in which the obligation is satisfied

  JudgmentRequired

  Over time: asset controlled by the customer

  Over time: simultaneous receipt and consumption / Over time: asset controlled by the customer / Over time: no alternative use and enforceable right to payment / At a point in time: date of transfer of control according to the indicators

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Accounting for the modification

  JudgmentRequired

  Cumulative catch-up adjustment to revenue

  Separate contract / Termination and new contract (prospective) / Cumulative catch-up adjustment to revenue / Combination of both approaches / No approved modification

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The manner of satisfaction is documentedPass
• The accounting for modifications is documentedPass
• The measurement method is statedPass
• Cumulative revenue equals prior revenue plus revenue for the periodPass
• The revenue entry is balancedPass
• The invoicing entry is balancedPass
• The advance entry is balancedNot evaluated
• The point-in-time revenue entry is balancedNot evaluated

Assets

1,675,000

Liabilities

0

Profit or loss

1,675,000

OCI

0

Equity

1,675,000

• Performance obligation followed (goods or services, place and manner of performance, termination and payment clauses)

  TextRequired

• Transaction price allocated to the obligation (after any modification)

  NumberRequired

• Total costs expected to satisfy the obligation (updated budget)

  Number

• Costs incurred at the reporting date that depict the entity's performance

  Number

  Exclude goods or services whose control is not transferred to the customer (para. 42). This workpaper does not restate the details on costs that do not depict performance.

• Cumulative revenue recognised in prior periods

  NumberRequired

• Cumulative amounts invoiced or received at the reporting date

  NumberRequired

• Amounts invoiced in the period (right become unconditional)

  Number

• Advance received before the transfer of goods or services

  Number

• Revenue from an obligation satisfied at a point in time (share of the price allocated), where relevant

  Number

  1,300,000

• Contract modification (change in scope or price, approval, goods or services added, agreed price)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §31IFRS 15 §32IFRS 15 §33IFRS 15 §35IFRS 15 §36IFRS 15 §37IFRS 15 §B3IFRS 15 §B4IFRS 15 §B5IFRS 15IFRS 15IFRS 15 §B8IFRS 15 §B9IFRS 15 §B10IFRS 15 §B11IFRS 15 §B12IFRS 15 §B13

• Criteria examined (one is enough)

  ChecklistRequired

  • Control: ability to direct the use of the asset and obtain substantially all of the remaining benefits
  • The customer simultaneously receives and consumes the benefits as the entity performs (another entity would not need to re-perform the work completed)
  • The performance creates or enhances an asset (tangible or intangible) that the customer controls as it is created
  • Asset with no alternative use: substantive contractual restriction or practical limitation (significant economic losses), assessed at inception
  • Enforceable right, at all times, to compensation approximating the selling price of the performance completed (costs incurred plus a reasonable margin, for example) if terminated for reasons other than the entity's failure to perform
  • Determination made at inception; if no criterion is met, obligation satisfied at a point in time

IFRS 15IFRS 15 §38

• Indicators of the transfer of control

  Checklist

  • Entity's present right to payment
  • Legal title held by the customer
  • Physical possession by the customer
  • Significant risks and rewards of ownership transferred to the customer
  • Customer acceptance of the asset
  • Any repurchase agreement taken into account (“Specific arrangements”)

IFRS 15 §39IFRS 15IFRS 15IFRS 15IFRS 15 §43IFRS 15 §44IFRS 15 §45IFRS 15IFRS 15IFRS 15 §B18

• Measurement method examined

  Checklist

  • Objective: depict the entity's performance in transferring control
  • A single method for each obligation, applied consistently and remeasured at each reporting date
  • Output method (value transferred) or input method (efforts expended), depending on the nature of the good or service
  • Goods or services whose control is not transferred excluded from the measure
  • Update of progress: change in accounting estimate (IAS 8)
  • Progress reasonably measurable; otherwise, revenue limited to the costs incurred that are expected to be recovered

• Method for measuring progress retained

  ChoiceRequired

  Not applicable: obligation satisfied at a point in time

  Input: costs incurred relative to total expected costs / Input: other measure (hours, time elapsed) / Output (surveys, milestones, units delivered) / Revenue to the extent of costs incurred (progress not reasonably measurable) / Not applicable: obligation satisfied at a point in time

  The choice of method is a judgement based on the nature of the good or service (para. 41); the calculation below illustrates the cost-to-cost method. For another method, enter the corresponding measures instead of costs.

IFRS 15 §18IFRS 15 §19IFRS 15 §20IFRS 15 §21

• Analysis of the modification

  Checklist

  • Change in scope or price approved by the parties (even implicitly); otherwise, existing contract unchanged
  • Scope approved without a price set: change estimated as variable consideration with the constraint
  • Separate contract: addition of distinct goods or services at a price reflecting their stand-alone selling prices
  • Remaining goods distinct: termination and new contract, prospectively
  • Remaining goods not distinct from a partially satisfied obligation: cumulative catch-up adjustment to revenue

IFRS 15 §105IFRS 15 §106IFRS 15 §107IFRS 15 §108

• Presentation examined

  ChecklistRequired

  • Contract presented as a contract asset or liability depending on the relationship between performance and payment; unconditional right presented as a receivable
  • Payment received or due before the transfer: contract liability
  • Performance before payment or due date: contract asset (right conditional on something other than the passage of time)
  • Receivable: right that is conditional only on the passage of time (IFRS 9)

IFRS 15 §21IFRS 15 §39IFRS 15IFRS 15 §B18IFRS 15 §105IFRS 15 §106IFRS 15 §107

• Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs)

  Calculation

  Transaction price allocated to the obligation (after any modification) ; Total costs expected to satisfy the obligation (updated budget) ; Costs incurred at the reporting date that depict the entity's performance

  The calculation applies to the price and cumulative costs the generic engine amount × units / reference units. After a modification accounted for as a cumulative catch-up (para. 21), enter the revised price and budget: the difference with prior revenue includes the catch-up.

• Revenue for the period (cumulative revenue − revenue of prior periods)

  Calculation

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative revenue recognised in prior periods

• Contract asset at the reporting date (cumulative revenue − amounts invoiced, if positive)

  Calculation

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

• Contract liability at the reporting date (amounts invoiced − cumulative revenue, if positive)

  Calculation

  Cumulative revenue at the reporting date (allocated price × costs incurred / total expected costs) ; − Cumulative amounts invoiced or received at the reporting date

  Teaching assumption: the amounts invoiced are due or collected, so that the net position of the contract gives a contract asset or a contract liability (para. 105 to 107); amounts invoiced and not collected remain receivables.

• Revenue for the period measured by progress

  Entry

  Debit Contract asset ← Revenue for the period (cumulative revenue − revenue of prior periods) ; Credit Revenue ← Revenue for the period (cumulative revenue − revenue of prior periods)

  Teaching assumption: revenue for the period is first recorded as a contract asset, then invoicing reclassifies it as a receivable; when there is an advance, revenue first reduces the contract liability.

• Invoicing: reclassification as a receivable

  Entry

  Debit Receivable ← Amounts invoiced in the period (right become unconditional) ; Credit Contract asset ← Amounts invoiced in the period (right become unconditional)

• Advance received before the transfer

  Entry

  Debit Cash ← Advance received before the transfer of goods or services ; Credit Contract liability ← Advance received before the transfer of goods or services

• Revenue from an obligation satisfied at a point in time, unconditional right

  Entry

  Account	Debit	Credit
  Receivable	1,300,000
  Revenue		1,300,000

IFRS 15 §18IFRS 15 §20IFRS 15 §21IFRS 15 §32IFRS 15 §35IFRS 15 §38

• Manner in which the obligation is satisfied

  JudgmentRequired

  At a point in time: date of transfer of control according to the indicators

  Over time: simultaneous receipt and consumption / Over time: asset controlled by the customer / Over time: no alternative use and enforceable right to payment / At a point in time: date of transfer of control according to the indicators

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Accounting for the modification

  JudgmentRequired

  No approved modification

  Separate contract / Termination and new contract (prospective) / Cumulative catch-up adjustment to revenue / Combination of both approaches / No approved modification

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The manner of satisfaction is documentedPass
• The accounting for modifications is documentedPass
• The measurement method is statedPass
• Cumulative revenue equals prior revenue plus revenue for the periodNot evaluated
• The revenue entry is balancedNot evaluated
• The invoicing entry is balancedNot evaluated
• The advance entry is balancedNot evaluated
• The point-in-time revenue entry is balancedPass

Assets

1,300,000

Liabilities

0

Profit or loss

1,300,000

OCI

0

Equity

1,300,000