New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 18 Revenue

1 Introduction

   1.1 Scope

2 Comparison between Section 23, previous UK GAAP and IFRS

   2.1 Key differences to Previous UK GAAP for construction contracts

       2.1.1 Separation of contracts

       2.1.2 Recognition of revenue from contract variations

       2.1.3 Contract costs

   2.2 Key differences to IFRS for construction contracts

       2.2.1 Construction of a separate asset

       2.2.2 Contract revenue

       2.2.3 Contract costs

       2.2.4 Recognition of contract revenue and expenses

       2.2.5 Presentation and disclosure

3 Requirements of Section 23 for revenue

   3.1 Terms used by Section 23

   3.2 Measurement of revenue

       3.2.1 Discounts, rebates and sales incentives

       3.2.2 Principal versus agent

   3.3 Deferred payments

   3.4 Exchanges of goods and services

   3.5 Identification of the revenue transaction

       3.5.1 Separately identifiable components

       3.5.2 Loyalty awards

   3.6 Sale of goods

       3.6.1 Goods with a right of return

       3.6.2 ‘Bill and hold’ sales

       3.6.3 Goods shipped subject to conditions

       3.6.4 Layaway sales (goods delivered when final payment made)

       3.6.5 Payments in advance

       3.6.6 Sale and repurchase agreements

       3.6.7 Subscriptions to publications

   3.7 Rendering of services

       3.7.1 Contingent fee arrangements

   3.8 Percentage of completion method

       3.8.1 Installation fees

       3.8.2 Advertising commissions

       3.8.3 Insurance agency commissions ...