Question: Explain the concept of cost constraint. Explain, with two examples, how the IASB used the cost constraint in developing the accounting requirements in IFRS 15

  1. Explain the concept of cost constraint.
  2. Explain, with two examples, how the IASB used the cost constraint in developing the accounting requirements in IFRS 15 Revenue with Contracts with Customers.

Guidance to students

Look at the following documents to answer Question 1:

  • IFRS Conceptual Framework
  • Exposure Draft ED/2010/6 Revenue from Contracts with Customers
  • Comment letter summary main issues Revenue recognition Staff paper for IASB/FASB Meeting December 2010, IASB Agenda reference 3A
  • IFRS 15 Revenue from Contracts with Customers
  • The documents are available at https://www.ifrs.org/projects/2015/revenue-from-contracts-with-customers/#project-history.
  • The length of this answer should not exceed 800 words.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Explain, with two examples, how the IASB used the cost constraint in developing the accounting requirements in IFRS 15 Revenue with Contracts with Customers.

Q:

Wired Telecom Limited (WTL) is a telecom service provider that deals in offering call services, mobile money, airtime, phones and related accessories. Your firm, PMG & Co. is the auditor of WTL for...

Q:

Wired Telecom Limited (WTL) is a telecom service provider that deals in offering call services, mobile money, airtime, phones and related accessories. Your firm, PMG & Co. is the auditor of WTL for...

Q:

ANSWER ALL THE QUESTIONS Question 1 Khaki & Sons Limited (KSL) is a family business that deals in car spare parts. It is one of the largest dealers in car spare parts in Uganda. Since inception in...

Q:

Revenue Recognition Paper Task: The primary goal of this assignment is to examine and analyze the selected case, "Revenue Recognition: Understanding the Impact of IFRS 15 - Revenue from Contracts...

Q:

Select any two of the International Accounting Standards presented this week and discuss how your MNC hands the two standards you selected. Post your response in this week?s forum so that everyone...

Q:

Revenue Recognition Paper Task: The primary goal of this assignment is to examine and analyze the selected case, Revenue Recognition: Understanding the Impact of IFRS 15 - Revenue from Contracts with...

Q:

dear tutor, i need you help to write the audit planning memo for this company (le chateau inc) ANNUAL REPORT 20 15 CORPORATE PROFILE Le Chteau is a leading Canadian specialty retailer offering...

Q:

1)Identify the cash flow patterns for 2020 and 2019. What do these patterns tell us about Loblaw? 2)Calculate the average age percentage of Loblaws property and equipment for 2020 and 2019 and...

Q:

Revenue Recognition Paper Task: The primary goal of this assignment is to examine and analyze the selected case, Revenue Recognition: Understanding the Impact of IFRS 15 - Revenue from Contracts with...

Q:

Consider the following price relatives and quantity information for grain production in Iowa (Census Bureau website, March 19, 2009). What is the 2007 weighted aggregate price index for the Iowa...

Q:

How can you be more aware of non-verbal communication (body language) in virtual interviews?

Q:

4 . ( LO 2 ) An auditor is studying a ratio of accounts receivable growth rate to sales growth rate. Which of the following indicates a potential risk of a collection problem in accounts receivable?...

Q:

If the following join statement is used to join two tables in a query, which of the following tables would all of the tuples in the relation appear in results? left join university.students on...