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Lesili Coursework 2 Assessment description: Report Assessment Component: Assessment weighting: Assessment limits: Assesses module learning outcome/s: CW2 70% 2500 WORDS. 1, 2, 3, 4 Last...

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Lesili Coursework 2

Assessment description:


Assessment Component:

Assessment weighting:

Assessment limits:

Assesses module learning outcome/s:



2500 WORDS.

1, 2, 3, 4

Last submission Date/Time:

Provisional feedback released:



Detailed guidance:

The IASB in May 2014 issued IFRS 15 (Revenue from contracts with customers) to supersede IAS 18 (Revenue) and IAS 11 (Accounting for Construction Contract).

IFRS 15 will take effect and apply to annual reporting period beginning on or after 1 January 2018.

IFRS 15 stipulates the requirements for recognising revenue from contracts with customers (except for contracts already within the scope of Standards on leases, insurance contracts and financial instruments).

The development of IFRS 15 was a joint project between the IASB and the FASB (the US standard setter); this collaboration is particularly significant in fostering the development of quality global accounting standards and more particularly in converging US GAAP with IFRS which has been a long and drawn out process.

Some analysts have described the emergence of IFRS 15 as a key milestone in converging differences in Revenue recognition across industry and jurisdictions. See link below. recognition


(a) Compare and contrast the new requirements of IFRS 15 with current practises under IAS 18 and IAS 11. A link to the project summary and feedback statement on IFRS 15 is provided below: Recognition/Documents/IFRS-15/Revenue-from-Contracts-Project-summary-Feedback- Statement-May-2014.pdf

(b) Critically evaluate the impact that the requirements of IFRS 15 will have on Entities and give some focus in your evaluation on disclosure.

Marking scheme

25%: subject matter understanding and judgment

25%: critical analysis.

25%: evidence of wider reading.

15%: synthesis of ideas into a logical, coherent report.

10%: presentation and English.

1. Feedback, marking criteria and grading of your assessment

This section tells you how the marker will assess your work fairly. All markers aim for our feedback to be: timely, individual to you, helpful, empowering and manageable.

They will also offer you opportunities to discuss the marking criteria they intend to use, and the type of feedback they intend to give you. You should create a shared understanding of this with them and your peers during the course of the module. They may also give you opportunities to assess your own work and the work of your peers. Look out for these opportunities.

Assessment markers can give you feedback and allocate marks to you using a range of methods and tools that are appropriate to the specific module and assessment. The marker may make comments within your script (in bubbles) and may also give you written comments in the long box. They may give you a form of audio or video feedback.

When they give you feedback on your assessment, as a minimum, your marker will tell you:

· if and how you have met the relevant learning outcomes

· the areas within which you did well in this assessment (they will commend you)

· the areas you could have improved in this assessment (they will make suggestions)

· what activities you can work on to help you in your next studies (you can take these ideas forward with you, and may discuss them with your Personal Tutor. You can also build them into your Action Planning.

In this module specifically, they will use the following tools. This feedback and marking structure will be specific to each component as relevant.

Answered Same Day Jul 23, 2021


Harshit answered on Jul 31 2021
120 Votes
    Serial Numbe
    Page Numbe
    Comparison between IFRS 15 and IAS 18 and IAS 11
    Impact of requirements IFRS 15 on entities
Revenue of a company is one of the most important information that an investor analyses for investing in a company. The stakeholders’ interest lies with the revenue that their company is able to generate with the given assets owned by the company. International Financial Reporting Standard (IFRS) 15
ought by the International Accounting Standards Board deals with the revenue from contracts with customers and the recognition of revenue. Prior to the advent of IFRS 15, International Accounting Standard 18 and, International Accounting Standard 11 were in the play. But after rigorous discussions and meeting between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), IFRS 15 was issued regarding the recognition of revenue in the financial statements.
The introduction of IFRS 15 aims at removing the inconsistencies in the GAAP and other disparities regarding the revenue recognition. The application of IFRS 15 was made mandatory from 01.01.2017 for the companies using IFRS cu
ently and for companies applying GAAP, the application of IFRS 15 was mandated from all reports made after 15.12.2017. IFRS 15 aims at recognizing the revenue on the basis of the obligations fulfilled by a company for a customer’s contract and recognize such part of the revenue of the total contract.
The introduction of IFRS 15 was necessary as there were limitations in the previous co
esponding accounting standards and such limitation created issues while reporting the complex transactions. The disclosures made in the previous standards did not provide the investors with relevant information and were not enough for the stakeholders to understand the assumptions in the recognition of the revenue by the company. The IFRS 15 aimed at develop a more comparable representation of the revenue in case of contracts and generalize the recognition of revenue from contracts in a standard way which would eventually remove the effort of learning the recognition criteria on case to case basis thereby giving the stakeholders all the useful information (Mattei, G. and Paoloni, N., 2019). In the previous system of revenue recognition, there were many inconsistencies which forced the companies to treat the same transaction in different ways. In the IFRS 15, the recognition of revenue was classified in a procedure of five steps which are as follows:
Step-1- Identification of a contract of a customer- IFRS 15 is applicable on the recognition of revenue in case of a contract and IFRS 15 will be applied individually in every contract. This aims at the realization of money by the company for the goods and services already provided by the company.
Step-2- Identification of the obligations in a contract- The Company has to identify the work that the company has to do for the customer as per the contract. The performance obligation of the contract can be distinctly identified and the revenue should be recognized based on such performance obligation as and when satisfied.
Step-3- Determination of the transaction price- The amount for which the contract has been decided is the transaction which may also include the changes in case of variations and adjustments. This is basically the sum of the value of obligations as segregated by the company based on the obligations of the company.
Step-4- Allocation of the transaction Price- For every performance as provided by the company, predetermined transaction price must be allocated for that performance. This can either be done by the method of adjusted market assessment approach or Expected cost plus a margin approach or the residual approach as selected by the company.
Step-5- Recognition of revenue when such obligation is completed- The Company can recognize the revenue of the performance obligation as allocated when the satisfaction of such obligation is completed. There are three conditions on the satisfaction of which the revenue of the contract or part of the contract in performance obligation can be recognized (Tong, T.L., 2014).
In the previous standards the revenue recognition criteria would vary between the companies, industries and the capital market. The IFRS 15 would affect the changes in few companies but that is important to
ing consistency in the revenue recognition practices followed in across the globe (Oyedokun, G., 2016). The small contracts would have little effect because of the IFRS 15 but the long term contract would go through substantial change in the revenue recognition. The following table compares the various aspects of the existing practice and the IFRS 15:
    Area of comparison

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