2018年-普华永道全球_IFRS_15_The_new_revenue_recognition_standard_58页_2mb

Summary of IFRS 15 Solutions for Retail and Consumer Goods Industries

Core Content

This document provides guidance on the application of IFRS 15, the new revenue recognition standard, specifically for the retail and consumer goods (R&C) industries. It addresses various revenue-related scenarios, including product sales, contractual arrangements, customer transactions, and other considerations, focusing on the five-step model outlined in IFRS 15.

Main Points

I. Product Sales from Consumer Products Companies to Retailers

• Transfer of Control (I.1): Revenue is recognized when control of the product is transferred to the customer. In the case of CosmeticsCo and CostCo, revenue is recognized when the products are delivered to the retailer, as the retailer has legal title and a present obligation to pay, even though it has not yet sold the products to end-customers.

• Right of Return (I.2): A right of return affects the estimated transaction price. Revenue is only recognized for products not expected to be returned. In the case of WatchCo, revenue is recognized at delivery, with a liability for expected returns and an asset for the returned goods. If there is no contractual right but a customary practice, the right of return is still accounted for similarly.

• Consignment Arrangements (I.3): Revenue is recognized only when the product is sold to the end-customer. GardenfurnishingsCo retains control until the product is sold, so revenue is not recognized at delivery. The entity must also assess whether it is the principal or agent in the transaction with the end-customer.

• Volume Discount (I.4): If the volume discount is contingent on future events, the entity must estimate variable consideration. TellieCo recognises revenue for the portion of the discount that is highly probable and accounts for the remaining discount as a liability. The revenue is recognized at the time of delivery.

• Bill-and-Hold Arrangements (I.5): Revenue is recognized when control transfers to the customer, even if physical possession is not yet obtained. Consoles AG recognizes revenue for all 100,000 units at year-end because the units are identified, ready for transfer, and cannot be redirected to another customer.

• Shipping Terms (I.6): Revenue for the sale of goods is recognized when control transfers, typically when goods are handed to the carrier. If shipping is a separate performance obligation, it is recognized over the shipping period. The entity must determine if it is the principal or agent for shipping services and account accordingly.

II. Contractual Arrangements Between Consumer Products Companies and Retailers (Other Than Product Sales)

• Slotting Fees (II.1): Slotting fees are not distinct and should be accounted for as a reduction of the selling price. ShampooCo recognises slotting fees as a reduction of revenue.

• Waste Disposal Payments (II.2): These payments are considered as consideration payable to a customer and are accounted for as a reduction of the transaction price unless the service provided is distinct and separately identifiable. If the fair value cannot be estimated, the entire amount is treated as a reduction of revenue.

• Trade Incentives - Co-Advertising Services (II.3): Payments to Retailer A for advertising are considered a distinct service and are expensed. Payments to Retailer B are not distinct and are treated as a reduction of revenue.

III. Transactions Between End-Customers and Retailers

• Customer Incentives (e.g., Buy three, get one free): Revenue is recognized when the incentive is fulfilled, and the related costs are adjusted accordingly. The entity must assess the terms of the incentive and whether it is a separate performance obligation.

• Discount Coupons: These are treated as variable consideration. The entity estimates the expected redemptions and adjusts revenue accordingly.

• Loyalty Programs and Gift Cards: Revenue is recognized when the gift card is redeemed or when the performance obligation is fulfilled. If the gift card is not expected to be redeemed, the entity must assess for impairment.

• Right of Return: Similar to product sales, the entity must estimate returns and adjust revenue and liabilities accordingly.

• Price Protection: Revenue is recognized at the time of sale, and any price protection is treated as a liability.

• Internet Sales/E-commerce: Revenue is recognized when control of the goods is transferred, typically at the point of delivery or when the customer receives the goods.

IV. Transactions Between End-Customers and Consumer Products Companies

• Coupons with Purchase: These are treated as variable consideration and are estimated based on historical redemption rates.

• Coupons in Local Paper: These are similar to coupons with purchase and are accounted for as variable consideration.

V. Licenses, Franchises, and Royalties

• Right to Use Brand Name: Revenue is recognized when the entity satisfies the performance obligation, which is typically when the brand is used by the customer.

• Franchise Agreements: Revenue is recognized over the period the franchisee uses the brand or service, based on the performance obligation.

• Sales to a Franchise: Revenue is recognized at the point of sale, with the upfront fee treated as a liability if it is non-refundable.

• Non-Refundable Upfront Fee: This is recognized as revenue over the period the franchisee benefits from the franchise.

VI. Other Considerations

• Sales of Goods - Agent: If the entity is an agent, revenue is recognized net of the commission paid to the third party.

• Concession Outlet within a Department Store: The entity must determine if it is the principal or agent in the transaction, as this affects revenue recognition.

• Excise Taxes and Duties: These are generally accounted for as expenses, unless they are considered part of the transaction price.

Key Information

• Revenue Recognition Model: IFRS 15 requires entities to use a five-step model: identify the contract, identify performance obligations, determine transaction price, allocate transaction price, and recognise revenue when performance obligations are satisfied.

• Control Transfer: The key factor in revenue recognition is the transfer of control. Entities must assess indicators such as legal title, physical possession, risks and rewards of ownership, and acceptance by the customer.

• Variable Consideration: Entities must estimate variable consideration using either the expected value method or the most likely amount method, and only include it in revenue if it is highly probable that a significant reversal will not occur.

• Distinct Goods or Services: To determine if a good or service is distinct, entities must assess whether the customer can benefit from it on its own and whether it is separately identifiable from other promises in the contract.

• Principal vs. Agent: Entities must evaluate whether they are the principal or agent in a transaction, which affects how revenue and expenses are recorded.

• Customary Practices: Customary business practices can be considered part of the contract terms, even if not explicitly stated.

This document provides a comprehensive overview of the application of IFRS 15 in the retail and consumer goods industries, focusing on practical implementation rather than theoretical discussion. It is intended to assist preparers in understanding and applying the standard consistently.