I mean ifrs 15 Turnover of contracts with customers. My company is service port company, we own the port, but the operation of the service is carried out by third parties, with the sharing of port service revenue is 60:40. Are we sponsors or agents? Should we recognize the share of crude or net? With these new guidelines, the scope of the new revenue recognition standard seemed to explicitly exclude transactions from collaborative agreements. The standard stipulated that a consideration should not be considered a “customer” in such an agreement (which implies that any consideration of that consideration should not be considered a business proceed under question 606). Hello Jessie, each situation must be carefully evaluated, and in each situation, other indicators are more important. What is important is that WHO controls goods/services before they are transferred. It is quite difficult to put in the case of services, but here is another consideration: In this particular case, you have to ask: can tenants buy utilities separate from the rental? Can they rent unserviced housing and pay for services provided by other providers? If not, but tenants can only buy one parcel (housing including utilities), this means that utilities do not differ from the rental and therefore you must evaluate the contract as a whole or as a package. In this case, it is very clear that the real estate company is a client because it owns the apartments. Thus, the $50 electricity bill is a cost for goods and services sold and $65 is included in apartment rental income. S. Note: this apart from the question of the commission (revenue) timing.
Mentions; We will follow a possible commission in another transaction system. 1. Company A asks Company B to provide services to suppliers 2. Company B relies on supplier invoices for these services 3. Company B hands over supplier invoices, plus the agreed commission/commission to company A 4. Company A pays Company B by deducting the withholding tax on the total amount of the invoice (including the supplier`s invoice) and also paying VAT on the total amount of bill 5. From the 4th, withholding tax and VAT deducted or paid were used by the tax authorities to achieve the expected revenues of Company B (which, in my opinion, is not the case). 6. Company B was able to convince the tax authorities that its revenues were ONLY the commission, but the tax authority requested that the gross amount charged be indicated in revenue with the associated costs (supplier invoices) in the financial statements 7. In accepting Company B`s explanation, the tax administration went ahead to present revenues in this gross amount The practical details for each type of allocation plan are different, but their conceptual purpose is consistent in using benefits to enable separate players to develop efficiencies or innovate in a mutually beneficial way.