IFRS15 & Revenue Recognition: A first investigation – Part 2 07 Tuesday Jan 2020 Posted by Ludwig Reinhard in Accounts Receivable ≈ 2 Comments Tagscontract change, contractual changes, IFRS 15, revenue recognition Share this:TwitterFacebookLike this:Like Loading... Related
Thanks for your detailed analysis. Is there a way to use Incoterms (like terms of delivery like Exworks, FOB, CIF etc ) to drive revenue recognition. In other words, as per contract with the customer, I have charged CIF price and therefore my obligation is to ensure that the goods I sell are delivered to their premises.
In this case, if I need to recognise the revenue only when the products reach the customer (and not when they leave my premises), can we use Revenue recognition or otherwise Delivery terms or Transport management module to ensure that revenue is recognised as per terms of delivery-thanks
Ludwig Reinhard said:
Hi RaviN, To my knowledge this is not possible at the moment. Best regards, Ludwig