Hi All,
I would like to know if there are any accounting implications that you may have encountered in case of high seas sale under IFRS 15?
Usually, I have seen that in case of high seas sale, buyer sells the goods while they are in transit, and risk and rewards are transferred to the new buyer (customer) on the endorsement of Bill of lading, which is treated as the satisfaction of performance obligation and revenue is recognized at that time. The responsibility to take the delivery of goods shifted to the new buyer on the endorsement.
High seas sales IFRS 15
Re: High seas sales IFRS 15
Yes the implications are the revenue recognition policy based on when control passes, sometimes when loaded and sometimes when unloaded, and considering who has responsibility of insuring risk whilst on board etc.
Never heard of a 'high seas sale' though so that may be something else.
Never heard of a 'high seas sale' though so that may be something else.