Moodle Chapter 13 Revenue

If the consideration for a contract may vary because of refunds or performance bonuses, how should the revenue be measured? 

It must be estimated (and ducted from the revenue) when revenue is recognized 

How should the revenue be calculated if the customer is granted the right to return the products?

The company should estimate the expected return and only recognise the amount which it expects.

Why is it important to identify the performance obligation?

It is important, because the revenue arising from each obligation is calculated separately 

If the transaction includes a warranty, how should that be accounted for?

As a simultaneous cost in accordance with IAS 37/Provision

What is a contract asset? What is the difference to a receivable?

Goods/services have been delivered to the customer, but not yet invoiced (and becoming a customer receivable).

Is a building contract a performance obligation that is satisfied over time or at a point in time? 

If the builder has control over the asset, the revenue at the builder will be recognized over time (for example using the percentage of completion method)

When identifying the revenue contract, what does the standard say about the payment?

It is probable the company will collect the cash

Define a contract liability.

If payments is made by the customer before the delivering company has transferred goods/services.

What is a stand-alone selling price and how does it affect the accounting?

If the performance obligations (like product, services) in a contract were to be sold separately, the revenue must be allocated to each performance obligation. 

Which of the following items are NOT included in the five-step model?

Calculate a possible credit loss in the contract