STATEMENT OF FINANCIAL POSITION 7.

Comparative Information
 PAS 1 requires preparing comparative information
Financial statements
 Minimum of two of each FS & its notes
are the structured representation of an entity's financial  When certain instances occur:
position and the results of its operations. it is the product a) An entity applies in accounting policy
of the financial reporting process. retrospectively makes a retrospective
restatement or reclassifies items in FS
General purpose financial statements are the subject b) the instance has a material effect under
matter of the conceptual framework and the PFRS. financial position
Purpose
8. Consistency Of Presentation
1. Primary Objective. To provide information about the  A change in presentation requires the
financial position financial performance and cash flows reclassification of items in comparative
of an entity that is useful to avoid range of users information.
2. Secondary Objective. they showed the results of  If the effect is material, the entity should provide
management stewardship over the entity’s resources additional statement of financial position

General Features

1. Fair Representation and Compliance With PFRS

 faithfully represented the transactions/events
 compliance on PFRS means fairly presented FS
 PAS 1 requires making an explicit and unreserved
statement of such compliance
 PAS 1 permits departure if RRF requires or allows;
it shall be disclosed

2. Going Concern
 Assess the entity’s ability to continue going Report form – vertical
concern ; which is at least but not limited to 12 Account form- horizontal
months
Management's Responsibility Over FS
3. Accrual Basis of Accounting
 FS shall be prepared in accrual basis, except for the  preparation and fair presentation of FS
statement of cash flows  internal control over financial reporting
 going concern assessment
4. Materiality And Aggregation  oversight over the financial reporting process
 Dissimilar items is presented separately unless  review and approval of FS
immaterial It is expressly stated in the “Statement Of Management’s
Responsibility For Financial Statements” attached to the
5. Offsetting FS’s cover letter. Signed by the chairman of the board CEO
 Asset and Liabilities or Income and Expenses are and CFO
not offset
 Offsetting is permitted when it reflects the Structure Of Financial Position
substance of the transaction.
PAS 1 does not describe the format of presenting items in
 Measuring asset net valuation is not offsetting
the statement of financial position. The entity may modify
the description used was it the nature of the entity and its
transactions.
6. Frequency Of Reporting  A classified presentation shall be used except when an
 FS is prepared at least annually unclassified presentation provides information that is
 If the entity changes its reporting period, it shall reliable and more relevant.
disclose:  PAS 1 permits mixed presentation.
a) Period covered
b) Reason for using shorter or longer period
c) Facts that amount presented are not entirely
comparable
Current Asset STATEMENT OF COMPREHENSIVE INCOME

a. Expected to be realized sold or consumed in the Income and expenses may presented either:
entity’s normal operating cycle
a) a single statement of PL and OCI
b. held primarily for trading
b) a two statement :
c. expected to be realized within 12 months after the
 statement of PL and
reporting or
 statement of OCI
d. cash or cash equivalent unless restricted from
being exchanged or use to settle liability for at Presenting a separate income statement is allowed as long
least two months after your reporting. as separate statement showing comprehensive income is
also prohibited. it is prohibited to present only income
Current Liabilities
statement
a. Expected to be settled in the entities normal
Profit or Loss
operating cycle
b. Held primarily for trading Profit or loss is in countless expenses excluding the
c. due to be settled within 12 months after the components of other comprehensive income. the excess of
reporting. income over expenses is profit while the deficiency is loss.
d. entity does not have the right at the end of the a method of computing the profit or loss is called the
reporting period to defer settlement of the liability transaction approach.
for at least 12 months after the reporting.
The following are not included in determining the profit or
Refinancing Agreement loss for the period:

A long-term obligation that is maturing within 12 months a) correction of prior error

after the reporting period is classified as current even if a b) changes in accounting policy
refinancing agreement to reschedule payment on a long- c) other comprehensive income
term basis is completed after the reporting period and d) transactions with owners such as issuance of share
before the financial statement is authorized for issue capital declaration of dividends and the like.

However, the obligation is classified as noncurrent if the The properties are not extension line items such as:
entity has the right at the end of the reporting period to a) revenue presenting separately interest revenue
rule over the obligation for at least 12 months after the b) finance costs
reporting period under an existing loan facility. c) gains and losses arising from the derecognition of
financial assets measured at amortized cost
Liabilities payable on demand
d) impairment losses and impairment gains on
 Are classified as current. financial assets
 It became payable on demand because of breach e) gains and losses and reclassification of financial
of loan provision. assets from amortized cost or FVOCI to FVPL
f) Share in the profit or loss of associates and joint
 Still current even if the lender agreed after the
ventures
reporting period and before authorization not to
g) tax expense
demand payment
h) result of discontinued operations
 however, it is noncurrent if the lender provides
the entity by the end of the reporting period a
grace period at least 12 months after the reporting
circumstances that rise to the separate disclosure of items of
period to ratify the breach
income and expense include:

a) write downs of inventories to NRV for PPE the

recoverable amount
b) restructuring of activities of an entity and reversal
of any provision
c) disposal of items of PPE
d) disposals of investment
e) Discontinued operations
f) litigation settlements
g) other reversals of provision

Extraordinary Items
prohibits in the statement of profit or loss and other  Arises for example disposal of foreign operation
comprehensive income the recognition of debt instrument measured and
FVOCI in a cash flow hedge become ineffective
Presentation of expense:
loss
a. nature of expense method- expenses are aggregated  do not rise on changes in revaluation surplus
according to their nature and not reallocated derecognition of equity instrument designated at
according to their function FVOCI and remeasurement of net defined benefit
b. function of expense method- an entity classified liability
expense according to their function.
Presentation of OCI
The nature of expense method is simpler ; it eliminates
considerable judgment needed and reallocated expenses to OCI section shall group items:
its function. However an entity shall choose whichever a) those for which reclassification adjustment is
method deems will provide information that is reliable and
allowed
more relevant.
b) and those for which reclassification adjustment is
if the function of expense method is used, additional not allowed
disclosure is required including depreciation and
amortization expense and employee benefits expense.

Major Categories of Function Expense the entities share in the Aussie eye of an associate or joint
venture accounted for under equity method should also be
a) Cost of sales (eg. Freight in) presented separately and also be grouped according to the
b) Distribution cost (selling expenses, eg. Freight out) classification.
c) Administrative Expenses (gen and administrative
expenses) Total Comprehensive Income
d) Other expenses (utilities)
e) Finance cost (interest expense)  Change in equity during a period resulting from
f) Income tax expense transaction and other events other than those
changes resulting from transaction like owners in
their capacity as owners
 it is the sum of profit or loss and OCI
Other Comprehensive Income (OCI)
 it comprises all non-owner changes in equity
Comprises items of income and expense (including
reclassification adjustments) that are not recognized in profit
or loss as required or permitted by PFRS

a) changes in revaluation surplus

b) remeasurement of net defined benefit liability
c) This and investment this technique that our
measured in FVOCI
d) gain and losses arising from translating financial
statement of foreign operation
e) you know effective portion of gain and losses on
hedging instrument
f) changes in fair value of financial liability
designated at FVPL
g) changes in time value option window option is
intrinsic value and time value are separated and
only the changes in the intrinsic value is designated
as the hedging instrument
h) changes in the value of forward elements of
forward contracts and separating forward element
and spot element of the forward control

Reclassification Adjustment

 ARE Amounts reclassified to profit or loss in the REVENUE FROM CONTRACTS WITH CUSTOMERS
current period that were recognized in OCI I in the (PFRS 15)
current or previous
Income increases in the form of inflows or enhancement of  The contracts are negotiated as a package with
assets AND decreases liabilities that result in increases in single commercial objective
equity  the amount of consideration in one contract
depends on the performance of the other contract
Revenue is income arising in the course of an entity’s
or some or
ordinary activities
 all the goods are services promised in the contract
Application are a single performance contract

PFRS 15 applies to contracts wherein the counterparty is a Notes:

customer. The performance of either party give rise to a contract
 A counterparty to a contract is not a customer if he asset or liability
agrees to participate in the entity’s activities wherein,  If a customer pays, or the entity has a right
he shares the related list and benefit rather than to amount ta consideration before the entity transfer
obtain the output of the entity goods ----- contract liability
 Applies to individual contracts with customers.  If the entity performs before the customer pay
However, it may also be applied to a group of similar before the payment is due-----entity recognizes the
contracts provided that the effects on the FS would contract asset excluding amount presented as
not differ materially when it is applied separately to receivable.
each
 Entity may use alternative description account
Does not apply for the following titles

a) Lease contract (PFRS 16) Contract asset is the Receivable is the entity’s
b) insurance contract (PFRS 17) entity’s right to right to consideration that
consideration in exchange is unconditional
c) financial instrument
for goods or services
d) Non-monetary exchanges between entities in the
transferred to a customer
same line of business the facilitates sales to
consumers
Step 2: Identify the performance obligation in the
core principle contract
An entity recognized revenue to depict the transfer of a) a distinct good or service
promised goods or services to a customer amount b) a series of distinct goods or services that are
Revenue Recognition substantially the same and that have the same
pattern of transfer to the customer
Step 1: Identify the contract with the customer
A promise is distinct:
a) Contracting parties approved and committed
 if the customer can benefit from the good or
b) Entity identifies the party’s right to the
service on its own or together with other resources
goods/services to be transferred
 the promise of transfer the goods or service is
c) Entity can identify the payment terms
separately identifiable from other promises in the
d) Contract has commercial substance
contract
e) Consideration is probable of collection
A promised good or service that is not distinct is combined
No revenue is recognized when it does not meet the criteria
with other promised goods or services until a bundle of
above. The entity needs not to reassess the criteria above if
goods that is distinct is identified
they have been met on contract inception unless there is an
indication of a significant change in fact and circumstances. in some cases this may result in creating all the promised
goods or services as a single performance obligation
When no revenue recognized, then recognize a liability.
a promise that is implied by the entities customary business
Cases when no contract does not exist if :
practices published policies or specific statement is also
 Contract (obligations) is unperformed treated as a performance obligation if at contract inception
 Both parties can terminate the contract without the promise rates a valid expectation of the customer that
penalty the entity does not satisfy the implied promise

performance obligation includes only activities that involve

a transfer of goods or services to a customer it does not
Combination of Contract – two or more contract by the include administrative tasks to set up a contract.
same customer is combined when:
Step 3: determine the transaction price b) Entities performance creates or enhances an asset that
the customer control
Transaction price is the amount of consideration to reach
c) The entity performance does not create an asset with
an entity expects to be entitled in exchange for transferring
an alternative use to the entity and the entity has an
transferred goods or services to a customer excluding
enforceable right to payment for performance
collected on behalf of third parties.
completed to date
Step 4: allocate the transaction price to the
An asset does not have an alternative use to an entity if the
performance obligation in the contract
entity is either restricted contractually from readily
It is allocated based on the relative stand alone prices. directing the asset for another use during or after the asset
completion.
Standalone selling price is ” the price at which a pram is
good or service can be sold separately to a customer” Measuring progress towards complete satisfaction of a
performance obligation
If the stand alone price is not directly determinable it shall
be estimated maximizing the use of observable inputs and OUTPUT METHODS
apply estimation methods:
Progress is measured based on direct measurement of the
a) Adjusted market assessment approach - evaluate value of the goods or services transferred to date
the market where the goods are services are sold
b) Expected cost plus margin approach - forecast Disadvantage: used to measure progress may not be
expected cost of satisfying performance obligation directly observable and the information required to comply
and add up appropriate margin them may be costly
c) Received one approach- standalone selling price of INPUT METHOD
a good preservice is the residual amount after
deducting all the stand alone prices of the other Progress is measured based on efforts or inputs expended
promised goods and services relative to the total expected inputs needed to full satisfy a
performance obligation.
Step 5: recognize revenue when the entity satisfies a
performance obligation If efforts are inputs are expended evenly throughout the
performance. Revenue may be recognized in the straight
Revenue is recognized when the entity satisfied a line basis.
performance obligation
Disadvantage: there maybe not be a direct relationship
There's no shared at the amount of transaction price between an entity's input and a transfer of controller asset
allocated to the satisfied performance obligation to a customer.
Satisfaction Of Performance Obligation changes in the measure of progress
A performance obligation is satisfied when the control over It is updated as circumstances change overtime to reflect
a promised goods or service is transferred to the customer. any changes in the outcome of the performance obligation:
Control is the ability to direct the use of an obtained accounted for as a change in accounting estimate in
substantially all of the economic benefit from an asset. accordance with PAS 8

Using the asset to:  revenue for a performance obligation satisfied over
time is recognized only if the progress towards the
a) Produce goods or provide services complete satisfaction of the performance obligation
b) Enhance the value of other assets can be reasonably measured
c) See the liabilities or reduce expenses  if the outcome of the performance obligation cannot
d) Selling or exchanging the asset be reasonably measured but the entity expects to
e) Lodging the asset to secure a loan and recover the cost incurred satisfying the performance,
f) Holding the asset. the revenue is recognized only to the extent of the cost
incurred until such time that the outcome of the
Performance Obligation Satisfied Overtime
performance obligation can be reasonably measured.
Revenue is recognizes overtime as the entity progresses
toward the complete satisfaction of the obligation.

Performance obligation satisfied at that point in time

If it meets one of the following criteria:
Recognized when the performance obligation is satisfied.
a) Customers simultaneously receive and consume the
benefits provided by the entity’s performance
The entity consider the following indicators of transfer of  the entity receive consideration before the good
control: or service is transferred to the customer
 the entity has an unconditional right to the
a) entity has present right to payment for the asset
consideration before the good or service it's
b) customer has legal titles to the asset
transferred to the customer
c) the entity has transferred physical possession of the
asset Contract asset is an entity's right to consideration in
d) the owner has accepted the asset exchange for goods or services that the entity has
transferred to a customer when the right is conditioned on
something other than the passage of time.
CONTRACT COST
A contract asset excluding amount recognized as receivable
Incremental cost of obtaining contract is recognized when the good or service is transferred to the
customer before the consideration is received.
Cost incurred in obtaining a contract with the customer
that the entity would not have incurred had a contract not A contract asset is measured assessed for impairment
been obtained presented and disclosed in accordance with PFRS 9.

 recognized as asset if they are expected to be Receivable is an entity’s right to consideration that is
recovered unconditional. It is accounted under PFRS 9.
 but, as a practical expedient, they are expensed Customers’ unexercised right
when incurred if the expected amortization of the
asset is one year or less The prepayment gives the customer the right to receive
those goods or services in the future. Revenue is recognized
cost that would have been in court regardless of whether
only when the entity transfer those goods or services.
the contract is obtained are expensed unless they are
explicitly chargeable to the customer. However there may be cases where an entity may not
exercise all his contractual rights this referred to as
Cost to fulfill a contract
breakage.
 within the scope of other standards (PAS 2, 16, 38) A breakage that result from non refundable prepayment is
accounted in accordance with those standards recognized as revenue in proportion to the pattern of right.
 outside the scope of others standard are recognized as
asset if:
a) The costs are directly related to a contract or
ADDITIONAL CONCEPTS: STEP 2
specifically identifiable
b) the cost generate or enhance resources that will Warranties
be used in satisfying performance obligation in
the future and Warranties are accounted as follows:
c) the costs are expected to be recovered
A warranty provides the customer service in addition to
The following costs are expensed when incurred: assurance that the product complies with the agreed upon
specification is a performance obligation.
 General and administrative cost (unless chargeable
to customer) Accordingly a portion of transaction price shall be allocated
 Cost of wasted materials labor or other resources to it. This is usually the case if the warranty is sold or
(not reflected in the contract) negotiated as a separate product.
 Cost that relates to satisfied or partially satisfied However a warranty that is not sold as a separate product
 Cost for which an entity cannot distinguish is nonetheless treated as performance obligation if the
whether the cost relate to unsatisfied or to customer is provided service in addition to assurance that
satisfied the product complies with agreed upon specification.
Presentation The entity shall consider the following when assessing if
warranty provide a customer with service:
a contract is presented in the statement of financial
position as a contract liability or a contract asset. contract  Warranty is required by law - warranty required by
liability is an entity's obligation to transfer goods or services law is not a performance obligation
to a customer through which the entity has received  the length of warranty coverage - The longer the
consideration from the customer coverage. The more likely that the warranty is a
performance obligation
a contract liability is recognized at the earlier of the date:
  The nature of the task that the entity promises to A customer option is accounted for as performance
perform – likely do not give rise to a performance obligation if it provide the customer a material right that
obligation the customer would not receive without entering into that.
 A warranty that neither provides a customer
Transaction price allocated production is treated as
service in addition to assurance nor is sold
prepayment for future goods or services and recognized as
separately is not a performance obligation. Search
revenue only when the goods or services are transferred or
warranty is accounted under past 37 provision..
when the option expires
A warranty that is both an assurance type and a service
When estimating stand alone selling price of an option the
type should be treated as single performance
entity should consider the likelihood option will be
obligation if the entity cannot reasonably account for
exercised
them separately.
A customer option that does not provide the customer with
A lot of people is an entity to pay compensation if
material right is not a performance obligation
products cause harm or damage that does not give rise
to a performance obligation. Customer loyalty programs
Principal versus agent consideration The customer earned our credits from his purchases. Points
can be exchanged for free or discounted goods or services
When another party is involved in providing goods or
services the entity shall determine whether it is acting
as principal or agent.
Non defendable upfront fees
When the performance is satisfied the principal
recognizes revenue at the gross amount of In some contract an entity charges a customer an
consideration. undefendable upfront fee at or near contract inception:

The entity is an agent if performance obligation is to  joining fees in health club membership contracts
arrange the provision of goods services services write  activation fees in telecommunication contracts
another party. When satisfied the agent recognises  set up fees in some services contracts
revitin at the commission or fee.  initial fees in some supply contracts

And dictators that an entity is an agent: That front fee is treated as performance obligation if it
relates to the transfer of this table for services to the
 Another party is primarily responsible for
customer. And it is not created as performance obligation if
fulfilling the contract
it relates to administrative task to set up a contract
 Entity does not have inventories
 Entity does not have discretion in establishing Additional concept : step 3
prices and the benefit is limited
When determining the transaction price the entity shall
 Entity consideration is in the form of
consider contract terms somari business practices the
commission
nature timing and amount of consideration and the effect
 Entity is not exposed to credit risk
of the following
Consignment arrangement
 Variable consideration
The entity recognized revenue only when the consignee  Constraining estimate of variable consideration
sells the consigned goods to end customer because it is  Existence of significant financing component in a
only at this point that the control is transferred to the contract
customer.  Non cash consideration and
 Consideration payable to a customer
Indicators of consignment arrangement
Valuable consideration
 Product is controlled by the entity
 The entity is able to required the return of the If the consideration includes a variable amount the entity
product or transfer to a third party shall estimate the amount to which it will be entitled in
 Dealer doesn't have unconditional obligation to exchange for transferring the promise goods or services
pay for the product
Constraining estimate of variable consideration
Customer options for additional goods or services
The estimated amount of variable consideration will be
a. Sales incentive for other discount and future goods included in the transaction price only to the extent that it is
b. Contract renewal option highly probable that the significant reversal in the amount
c. Customer a white point of community revenue recognized will not occur when the
uncertainty associated with the variable consideration is
subsequently resolved
Customer promised to accept a return product during the
The amount of consideration can vary because of discount return. Shall not be treated as performance obligation but
rabbits refines quartets price concessions incentives rather obligation to provide a refund.
performance bonuses penalties and others.
Exchanges of 1 product were another of the same type are
The amount of variable consideration shall be estimated not considered returns
using the following method:
Existence of significant financing component in a contract
 Expected value - the sum of probability weighted
amounts in a range of possible amounts When determining the transaction price, the promised
 Most likely amount - the single most likely consideration shall be adjusted for the time value of money
amount in the range of possible amounts if it explicitly/implicitly provides customer or the entity
significant benefit of financing.
Allocation variable consideration
Core principle : revenue shall reflect the cash selling price
It shall be allocated to all of the performance obligation in (the customer, outright cash)
the contract unless it is clear that it relates only to a specific
 When adjusting, the discount rate used shall be
part of the contract.
the rate that will reflect in a separate transaction
Discounts between the parties.
 The discount rate may be identified as the rate
Discount is given to a customer if the transaction price is that discounts the promised consideration to the
less than the sum of the standalone selling prices of bundle cash selling price.
of goods.  After contract inception, the discount rate shall
Indulgence of evidence to the contrary, the discount is not be updated for changes in rates.
presumed to relate to all of the performance obligation in The customer does not have significant financing
contract_shall be allocated proportionately. component if:
There is no accounting problem here because the discount a) He paid in advance and the transfer of goods is at
automatically allocated when a transaction price is the customer’s discretion
allocated to the performance obligation and the relative b) Substantial amount of consideration is variable
standalone prices of the goods. contingent on non/occurrence of future event,
However when there is observable evidence that the beyond the control of both parties
discount relate to one or more but not all of the c) Difference between promised consideration and
performance obligation the discount shall be allocated only cash selling price arises from other reasons
to the performance obligation to which the discount relate No need for promise consideration adjustment if the
Sell with the right of return significant financing is expected to be collected within one
year.
A customer may be given the right to return a product sold
Non-cash consideration
for various reasons

 No revenue is recognized for the product expected It shall be measured:

to be returned  Fair value or
 Are refund liability is recognized for the portion of  If not available, at the selling price of the
the consideration received that is expected to be goods/services promised
refunded to the customer
 An asset is recognized for the entities right to If customer contributes to facilitate the entity’s fulfillment
recover product from the customer on the set of the contract, the contributed goods shall be treated as
linda refund liability noncash consideration if the entity control over them.
 The asset is initially measured at the former carrying
Consideration payable to a customer
amount of the product less unexpected cost to recover
the product This pertains to cash amounts payable to the customer or
 At the end of each reporting period the measurement to other parties that purchase the enitity’s goods/services.
of the asset is updated for changes in expectation
about product could be returned  Treated as reduction to the transaction price
 The asset is presented to the politely from the refined  Except: when the payment is in exchange for
liability distinct goods
The reduction is recognized at the later events:

 Revenue is recognized for the transfer of related goods CONTRACT MODIFICATIONS

 Entity pays or promises to pay consideration
Accounted:
If the consideration payable to customer is in exchange for
a) Separate contract if the modification result to
distinct good/service, the payment is treated as a regular
additional goods/service that is distinct and
purchase from supplier.
modified contract price reflecting stand alone
If the payment exceeds the FV the distinct goods, the price
excess is treated as reduction of the transaction price. If the  The entity continue to account existing contract
FV cannot reasonably estimate, all payment is treated as “as is” accounts modification of the new
reduction of the transaction price. b) As if the modification is a termination of the
existing contract and the creation of new contract
if the additional goods or services are distinct but
ADDITIONAL CONCEPTS: STEP 5 the modified contract price does not reflect the
stand alone selling prices of those additional goods
Bill and Hold Arrangements or services.
 the balance of transaction price from the original
A contract under which an entity bills a customer but the
contract plus the consideration from the
entity retains the physical possession of the product until
modification is allocated to the remaining
transferred to the customer in the future.
performance obligation
Revenue is recognized upon the billing. Revenue is not c) as if the modification is part of the existing
recognized if there is simply an intention to acquire or contract if the additions or goods are not distinct
manufacture the goods in the future.  the effect of the modification is accounted for as
prospective catch up adjustment to revenue.
The delay in delivery is due to customer’s request
changes in transaction price
Lay way sale
I subsequent change in the transaction price arising other
The goods are delivered only when the buyer makes the
than a contract modification shall be allocated to the
final payment in a series of installments.
performance obligation based on the relative standalone
The delay is due to the sellers’ request. The control over prices of the distinct goods and contract inception.
the goods is transferred when delivery is made (when
accordingly subsequent changes instant around selling
customer fully pay). Revenue is recognized when the goods
prices are ignored. amounts allocated to a satisfied
are delivered to the customer.
performance obligation shall be recognized as revenue or
Repurchase agreement as a reduction of revenue in the period in which the
transaction price changes.
A contract in which an entity sells an asset, which promise
or has option to the repurchase the asset. a subsequent change in the transaction price shall be
allocated to all the performance obligation in the contract
Forms: unless it is clearly relates only to a specific part of the
1) Entity’s obligation to repurchase the asset (forward) contract.
2) Entity’s right to repurchase the asset (call option) a change in the transaction price after a contract
3) Entity’s obligation to repurchase the asset at modification is accounted:
customer’s request (put option)
 if the change in the transaction price is attributable
1 and 2: the control is not transferred because the valuable consideration that existed before a
customer is limited to direct the use of it. modification that was accounted for as a termination
 Repurchase price is < original selling price ( PFRS 16 of the original contract and the creation of new
Leases) contract, the change in the transaction price is
 Repurchase equal/more than original price (financing allocated to the performance obligation in the original
agreement) - continue to recognize the asset. contract
 in all other cases in which the modification was not
3: the entity shall determine at contract inception if accounted for as a separate contract for the change in
customer has significant economic incentive to repurchase the transaction price is allocated to the unsatisfied
it. performance obligation their modified contract.
Repurchase price exceeds the market value – there’s
significant economic incentive
NONCURRENT ASSET HELD FOR SALE AND
DISCONTINUED OPERATION

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