Create checklist for revenue recognition under IFRS 15
1. Identification of the Contract
- Review documentation for any agreements.
- Check for mutual assent from both parties.
- Ensure terms are clear and understandable.
- Confirm that no significant contingencies are present.
- Obtain signatures or written approvals.
- Verify that all parties have authority to approve.
- Document any verbal agreements or approvals.
- List each party's rights under the contract.
- Outline the obligations that each party must fulfill.
- Ensure clarity in performance expectations.
- Assess whether the contract will result in cash flows.
- Evaluate the economic impact on parties involved.
- Determine if the risks and rewards are affected.
- Review the customer’s creditworthiness.
- Analyze historical payment patterns.
- Consider any economic factors affecting collection.
- Categorize the contract type.
- Gather evidence of customary practices.
- Verify oral agreements with supporting documents.
- Verify mutual agreement through documentation.
- Check for any conditions that may affect commitment.
- Confirm ongoing communication about obligations.
- Consult legal counsel for contract validity.
- Review jurisdictional requirements.
- Identify any potential legal disputes.
- Identify any performance-dependent payments.
- Assess the likelihood of contingent events occurring.
- Document the criteria for contingent considerations.
- List each distinct good or service.
- Evaluate interdependencies between obligations.
- Document how obligations will be fulfilled.
- Identify any amendments or changes made.
- Assess impact on performance obligations.
- Document reasons for modifications.
- Review IFRS 15 guidelines.
- Ensure compliance with all criteria.
- Document any deviations from standards.
- Maintain records of all assessments.
- Log discussions and findings.
- Ensure documentation is easily accessible.
Use in Manifestly