Question 3 - Part a
In this video, you'll learn how to evaluate whether a gain on the sale of an intangible asset should be recognised as revenue under IFRS 15.
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In this lesson
- 0:00 Question Three Part A Introduction
- 1:05 Revenue Recognition Rules Under IFRS 15
- 1:47 Analysing Calendar's Sales History
- 2:28 Identifying Calendar's Ordinary Business Activities
- 4:35 Intangible Assets and Revenue Classification
- 5:30 Applying the Standard to the Scenario
About this lesson
We work through a practical example where a company has classified a development project sale as ordinary business activity, then apply the standard's definition of revenue to challenge this treatment. You'll see how to structure your answer by stating the rule first, then applying it to the facts—a technique that helps you pick up marks even if you're uncertain, and how to identify when a prior period adjustment might be needed. This approach is essential for Strategic Business Reporting (SBR) case study questions, where revenue recognition and intangible asset treatment are frequently tested.
Duration: 7m
Transcript
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