International Accounting Standard 18 Revenue

1、International Accounting Standard 18 RevenueIAS 18International Accounting Standard 18RevenueThis version includes amendments resulting from IFRSs issued up to 17 January 2008.IAS 18 Revenue was issued by the International Accounting Standards Committee inDecember 1993. It replaced IAS 18 Revenue Re

2、cognition (issued in December 1982).Limited amendments to IAS 18 were made as a consequence of IAS 39 (in 1998), IAS 10(in1999) and IAS 41 (in January 2001).In April 2001 the International Accounting Standards Board resolved that all Standardsand Interpretations issued under previous Constitutions c

3、ontinued to be applicable unlessand until they were amended or withdrawn.Since then IAS 18 has been amended by the following IFRSs:?IAS 39 Financial Instruments: Recognition and Measurement (as revised in December 2003)?IFRS 4 Insurance Contracts (issued March 2004).IAS 1 Presentation of Financial S

4、tatements (as revised in September 2007) amended theterminology used throughout IFRSs, including IAS 18.The following Interpretations refer to IAS 18:?SIC-13 Jointly Controlled EntitiesNon-Monetary Contributions by Venturers (issued December 1998 and subsequently amended)?SIC-27 Evaluating the Subst

5、ance of Transactions involving the Legal Form of a Lease (issued December 2001 and subsequently amended)?SIC-31 RevenueBarter Transactions Involving Advertising Services (issued December 2001 and subsequently amended)?IFRIC 12 Service Concession Arrangements (issued November 2006 and subsequently am

6、ended)?IFRIC 13 Customer Loyalty Programmes (issued June 2007).? IASCF1185IAS 18CONTENTSparagraphsINTERNATIONAL ACCOUNTING STANDARD 18REVENUEOBJECTIVESCOPE16DEFINITIONS78MEASUREMENT OF REVENUE912IDENTIFICATION OF THE TRANSACTION13SALE OF GOODS1419RENDERING OF SERVICES2028INTEREST, ROYALTIES AND DIVI

7、DENDS2934DISCLOSURE3536EFFECTIVE DATE37APPENDIX?1186 IASCFIAS 18International Accounting Standard 18 Revenue (IAS 18) is set out in paragraphs 137.Allthe paragraphs have equal authority but retain the IASC format of the Standardwhen it was adopted by the IASB. IAS 18 should be read in the context of

8、 its objective,the Preface to International Financial Reporting Standards and the Framework for the Preparationand Presentation of Financial Statements. IAS 8 Accounting Policies, Changes in AccountingEstimates and Errors provides a basis for selecting and applying accounting policies in theabsence

9、of explicit guidance.? IASCF1187IAS 18International Accounting Standard 18 Revenue ObjectiveIncome is defined in the Framework for the Preparation and Presentation of FinancialStatements as increases in economic benefits during the accounting period in theform of inflows or enhancements of assets or

10、 decreases of liabilities that result inincreases in equity, other than those relating to contributions from equityparticipants. Income encompasses both revenue and gains. Revenue is incomethat arises in the course of ordinary activities of an entity and is referred to by avariety of different names

11、 including sales, fees, interest, dividends and royalties.The objective of this Standard is to prescribe the accounting treatment of revenuearising from certain types of transactions and events.The primary issue in accounting for revenue is determining when to recogniserevenue. Revenue is recognised

12、 when it is probable that future economic benefitswill flow to the entity and these benefits can be measured reliably. This Standardidentifies the circumstances in which these criteria will be met and, therefore,revenue will be recognised. It also provides practical guidance on the applicationof the

13、se criteria.Scope1This Standard shall be applied in accounting for revenue arising from thefollowing transactions and events: (a)the sale of goods;(b)the rendering of services; and(c)the use by others of entity assets yielding interest, royalties and dividends.2This Standard supersedes IAS 18 Revenu

14、e Recognition approved in 1982. 3Goods includes goods produced by the entity for the purpose of sale and goodspurchased for resale, such as merchandise purchased by a retailer or land andother property held for resale.4The rendering of services typically involves the performance by the entity of aco

15、ntractually agreed task over an agreed period of time. The services may berendered within a single period or over more than one period. Some contracts forthe rendering of services are directly related to construction contracts, forexample, those for the services of project managers and architects. R

16、evenuearising from these contracts is not dealt with in this Standard but is dealt with inaccordance with the requirements for construction contracts as specified inIAS11 Construction Contracts.5The use by others of entity assets gives rise to revenue in the form of: (a)interestcharges for the use o

17、f cash or cash equivalents or amounts due tothe entity;?1188 IASCFIAS 18(b)royaltiescharges for the use of long-term assets of the entity, for example,patents, trademarks, copyrights and computer software; and(c)dividendsdistributions of profits to holders of equity investments inproportion to their

18、 holdings of a particular class of capital.6This Standard does not deal with revenue arising from: (a)lease agreements (see IAS 17 Leases); (b)dividends arising from investments which are accounted for under theequity method (see IAS 28 Investments in Associates); (c)insurance contracts within the s

19、cope of IFRS 4 Insurance Contracts; (d)changes in the fair value of financial assets and financial liabilities or theirdisposal (see IAS 39 Financial Instruments: Recognition and Measurement); (e)changes in the value of other current assets;(f)initial recognition and from changes in the fair value o

20、f biological assetsrelated to agricultural activity (see IAS 41 Agriculture); (g)initial recognition of agricultural produce (see IAS 41); and(h)the extraction of mineral ores.Definitions7The following terms are used in this Standard with the meanings specified: Revenue is the gross inflow of econom

21、ic benefits during the period arising in thecourse of the ordinary activities of an entity when those inflows result inincreases in equity, other than increases relating to contributions from equityparticipants. Fair value is the amount for which an asset could be exchanged, or a liabilitysettled, b

22、etween knowledgeable, willing parties in an arms length transaction. 8Revenue includes only the gross inflows of economic benefits received andreceivable by the entity on its own account. Amounts collected on behalf of thirdparties such as sales taxes, goods and services taxes and value added taxes

23、are noteconomic benefits which flow to the entity and do not result in increases inequity. Therefore, they are excluded from revenue. Similarly, in an agencyrelationship, the gross inflows of economic benefits include amounts collectedonbehalf of the principal and which do not result in increases in

24、 equity fortheentity. The amounts collected on behalf of the principal are not revenue.Instead, revenue is the amount of commission.Measurement of revenue9Revenue shall be measured at the fair value of the consideration received or*receivable.*See also SIC-31 RevenueBarter Transactions Involving Adv

25、ertising Services? IASCF1189IAS 1810The amount of revenue arising on a transaction is usually determined byagreement between the entity and the buyer or user of the asset. It is measuredat the fair value of the consideration received or receivable taking into accountthe amount of any trade discounts

26、 and volume rebates allowed by the entity.11In most cases, the consideration is in the form of cash or cash equivalents and theamount of revenue is the amount of cash or cash equivalents received orreceivable. However, when the inflow of cash or cash equivalents is deferred, thefair value of the con

27、sideration may be less than the nominal amount of cashreceived or receivable. For example, an entity may provide interest free credit tothe buyer or accept a note receivable bearing a below-market interest rate fromthe buyer as consideration for the sale of goods. When the arrangementeffectively con

28、stitutes a financing transaction, the fair value of the considerationis determined by discounting all future receipts using an imputed rate of interest.The imputed rate of interest is the more clearly determinable of either: (a)the prevailing rate for a similar instrument of an issuer with a similar

29、credit rating; or(b)a rate of interest that discounts the nominal amount of the instrument tothe current cash sales price of the goods or services.The difference between the fair value and the nominal amount of theconsideration is recognised as interest revenue in accordance with paragraphs 29and 30

30、 and in accordance with IAS 39.12When goods or services are exchanged or swapped for goods or services which areof a similar nature and value, the exchange is not regarded as a transaction whichgenerates revenue. This is often the case with commodities like oil or milk wheresuppliers exchange or swa

31、p inventories in various locations to fulfil demand on atimely basis in a particular location. When goods are sold or services are renderedin exchange for dissimilar goods or services, the exchange is regarded as atransaction which generates revenue. The revenue is measured at the fair valueof the g

32、oods or services received, adjusted by the amount of any cash or cashequivalents transferred. When the fair value of the goods or services receivedcannot be measured reliably, the revenue is measured at the fair value of thegoods or services given up, adjusted by the amount of any cash or cash equiv

33、alentstransferred.Identification of the transaction13The recognition criteria in this Standard are usually applied separately to eachtransaction. However, in certain circumstances, it is necessary to apply therecognition criteria to the separately identifiable components of a singletransaction in or

34、der to reflect the substance of the transaction. For example,when the selling price of a product includes an identifiable amount forsubsequent servicing, that amount is deferred and recognised as revenue over theperiod during which the service is performed. Conversely, the recognitioncriteria are ap

35、plied to two or more transactions together when they are linked insuch a way that the commercial effect cannot be understood without reference to?1190 IASCFIAS 18the series of transactions as a whole. For example, an entity may sell goods and,at the same time, enter into a separate agreement to repu

36、rchase the goods at alater date, thus negating the substantive effect of the transaction; in such a case,the two transactions are dealt with together.Sale of goods14Revenue from the sale of goods shall be recognised when all the followingconditions have been satisfied: (a)the entity has transferred

37、to the buyer the significant risks and rewards ofownership of the goods;(b)the entity retains neither continuing managerial involvement to the degreeusually associated with ownership nor effective control over the goods sold;(c)the amount of revenue can be measured reliably;(d)it is probable that th

38、e economic benefits associated with the transactionwill flow to the entity; and(e)the costs incurred or to be incurred in respect of the transaction can bemeasured reliably.15The assessment of when an entity has transferred the significant risks andrewards of ownership to the buyer requires an exami

39、nation of the circumstancesof the transaction. In most cases, the transfer of the risks and rewards ofownership coincides with the transfer of the legal title or the passing ofpossession to the buyer. This is the case for most retail sales. In other cases, thetransfer of risks and rewards of ownersh

40、ip occurs at a different time from thetransfer of legal title or the passing of possession.16If the entity retains significant risks of ownership, the transaction is not a sale andrevenue is not recognised. An entity may retain a significant risk of ownership ina number of ways. Examples of situatio

41、ns in which the entity may retain thesignificant risks and rewards of ownership are: (a)when the entity retains an obligation for unsatisfactory performance notcovered by normal warranty provisions;(b)when the receipt of the revenue from a particular sale is contingent on thederivation of revenue by

42、 the buyer from its sale of the goods;(c)when the goods are shipped subject to installation and the installation is asignificant part of the contract which has not yet been completed by theentity; and(d)when the buyer has the right to rescind the purchase for a reason specifiedin the sales contract

43、and the entity is uncertain about the probability ofreturn.17If an entity retains only an insignificant risk of ownership, the transaction is asale and revenue is recognised. For example, a seller may retain the legal title tothe goods solely to protect the collectibility of the amount due. In such

44、a case, ifthe entity has transferred the significant risks and rewards of ownership, the? IASCF1191IAS 18transaction is a sale and revenue is recognised. Another example of an entityretaining only an insignificant risk of ownership may be a retail sale when arefund is offered if the customer is not

45、satisfied. Revenue in such cases isrecognised at the time of sale provided the seller can reliably estimate futurereturns and recognises a liability for returns based on previous experience andother relevant factors.18Revenue is recognised only when it is probable that the economic benefitsassociate

46、d with the transaction will flow to the entity. In some cases, this may notbe probable until the consideration is received or until an uncertainty is removed.For example, it may be uncertain that a foreign governmental authority willgrant permission to remit the consideration from a sale in a foreig

47、n country.When the permission is granted, the uncertainty is removed and revenue isrecognised. However, when an uncertainty arises about the collectibility of anamount already included in revenue, the uncollectible amount or the amount inrespect of which recovery has ceased to be probable is recogni

48、sed as an expense,rather than as an adjustment of the amount of revenue originally recognised.19Revenue and expenses that relate to the same transaction or other event arerecognised simultaneously; this process is commonly referred to as the matchingof revenues and expenses. Expenses, including warr

49、anties and other costs to beincurred after the shipment of the goods can normally be measured reliably whenthe other conditions for the recognition of revenue have been satisfied. However,revenue cannot be recognised when the expenses cannot be measured reliably; insuch circumstances, any considerat

50、ion already received for the sale of the goodsis recognised as a liability.Rendering of services20When the outcome of a transaction involving the rendering of services can beestimated reliably, revenue associated with the transaction shall be recognised byreference to the stage of completion of the

51、transaction at the end of the reportingperiod. The outcome of a transaction can be estimated reliably when all thefollowing conditions are satisfied: (a)the amount of revenue can be measured reliably;(b)it is probable that the economic benefits associated with the transactionwill flow to the entity;

52、(c)the stage of completion of the transaction at the end of the reportingperiod can be measured reliably; and(d)the costs incurred for the transaction and the costs to complete the*transaction can be measured reliably.21The recognition of revenue by reference to the stage of completion of atransacti

53、on is often referred to as the percentage of completion method. Underthis method, revenue is recognised in the accounting periods in which theservices are rendered. The recognition of revenue on this basis provides useful*See also SIC-27 Evaluating the Substance of Transactions in the Legal Form of

54、a Lease and SIC-31 RevenueBarter Transactions Involving Advertising Services?1192 IASCFIAS 18information on the extent of service activity and performance during a period.IAS 11 also requires the recognition of revenue on this basis. The requirements ofthat Standard are generally applicable to the r

55、ecognition of revenue and theassociated expenses for a transaction involving the rendering of services. 22Revenue is recognised only when it is probable that the economic benefitsassociated with the transaction will flow to the entity. However, when anuncertainty arises about the collectibility of a

56、n amount already included inrevenue, the uncollectible amount, or the amount in respect of which recoveryhas ceased to be probable, is recognised as an expense, rather than as anadjustment of the amount of revenue originally recognised.23An entity is generally able to make reliable estimates after i

57、t has agreed to thefollowing with the other parties to the transaction: (a)each partys enforceable rights regarding the service to be provided andreceived by the parties;(b)the consideration to be exchanged; and(c)the manner and terms of settlement.It is also usually necessary for the entity to have

58、 an effective internal financialbudgeting and reporting system. The entity reviews and, when necessary, revisesthe estimates of revenue as the service is performed. The need for such revisionsdoes not necessarily indicate that the outcome of the transaction cannot beestimated reliably.24The stage of

59、 completion of a transaction may be determined by a variety ofmethods. An entity uses the method that measures reliably the servicesperformed. Depending on the nature of the transaction, the methods mayinclude: (a)surveys of work performed;(b)services performed to date as a percentage of total services to be performed;or(c)the proportion that costs incurred to date bear to the estimated total costsof the transaction. Only costs that reflect ser