Search found 3 matches

by tpeter81
30 Jun 2021, 21:00
Forum: IFRS-related topics
Topic: Customer contracts under IFRS 3
Replies: 5
Views: 3596

Re: Customer contracts under IFRS 3

JRSB, advanced payment is already booked, however future cash flows of open orders will be recognized during the transaction. (completion is 0%, therefore future cash is expected.) should future CF be positive, it would be recognized as customer relationship (satisfying contractual rights), however ...
by tpeter81
30 Jun 2021, 18:19
Forum: IFRS-related topics
Topic: Customer contracts under IFRS 3
Replies: 5
Views: 3596

Re: Customer contracts under IFRS 3

Dear Marek, thanks for your reply. I understand that prepayment will be recognized as liability, however I still do not understand how negative customer relationship may be recognized. -> Cash flows minus prepayment resulted in negative value according to MEEM approach. (As being a major EPC contrac...
by tpeter81
29 Jun 2021, 21:33
Forum: IFRS-related topics
Topic: Customer contracts under IFRS 3
Replies: 5
Views: 3596

Customer contracts under IFRS 3

Dear All, According to IFRS3 - business combinations, customer contracts (open orders) may be recognized during the transaction as arising from contractual rights. Example: revenue 50, cost (30) -> fair value of customer contract is 20 which may be recognized as customer contract. Considering that 5...