Calculating Revenue with the 5 Principles of IFRS 15

In this episode, I walk you through one of the most examinable areas in SBR: revenue under IFRS 15 Revenue from Contracts with Customers. We start right from the basics, so you’re not left guessing, and build up to the core principles that underpin the standard.

I talk through the five-step model, explain why revenue is such a high-risk area (especially from an audit perspective), and why simply memorising the steps won’t earn you marks in the exam.

More importantly, I show you how to apply that knowledge to a real exam-style question. You’ll see exactly how to identify performance obligations, allocate the transaction price, and deal with timing issues (whether revenue is recognised at a point in time or over time).

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Chapters:
00:00 Why revenue matters for exam success
00:18 Episode overview and learning approach
00:51 Introduction to Zaakirah
01:12 What is revenue and why it’s high risk
01:47 Timing issues and manipulation risks
02:01 Introduction to IFRS 15
02:33 The five-step model explained
03:01 Step 1: Identifying the contract
03:18 Step 2: Identifying performance obligations
04:02 Step 3: Determining the transaction price
04:29 Step 4: Allocating the transaction price
05:06 Step 5: Recognising revenue (point in time vs over time)
05:53 Why memorising won’t earn marks
06:26 Moving to exam application
06:40 Understanding the exam requirement (5-mark question)
08:08 Identifying performance obligations in the scenario
10:12 Allocating revenue using stand-alone selling prices
11:20 Timing of revenue recognition
12:19 Calculating correct revenue figure
12:47 Correcting overstated revenue (exam technique)
13:27 Current vs non-current liability (deferred revenue)
13:39 Final exam tips and wrap-up

Видео Calculating Revenue with the 5 Principles of IFRS 15 канала Tom Clendon ACCA SBR