PSAK 72 Pendapatan Kontrak Pelanggan 11112017

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AKUNTANSI

PENDAPATAN DARI

KONTRAK PELANGGAN

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Agenda

Perubahan Standar

Akuntansi Pendapatan

Kontrak Pelanggan

Akuntansi Pendapatan

Kontrak Pelanggan

Ilustrasi

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PSAK 72

• _{PSAK 72 merupakan adopsi IFRS 15}

_{Revenue from}

contracts with customers

effective 2018,

kecuali

:

– _{Item terkait IFRS 16}_Leases_{(karena belum diadopsi)} _ _hak

penggunaan aset

– _{Tanggal efektif dan penarikan standar yang telah ada}

• _{Standar ini bersifat}

_{principles based}

• _{Standar komprehensif karena mengatur semua jenis}

Pendapatan yang terkait dengan kontrak pelanggan

sehingga menghilangkan pengaturan dalam standar yang

lain.

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PSAK yang Digantikan

PSAK 23: Pendapatan

PSAK 34: Kontrak Konstruksi,

ISAK 10: Program Loyalitas Pelanggan,

ISAK 21: Perjanjian Konstruksi Real Estat,

ISAK 27: Pengalihan Aset dari Pelanggan, dan

PSAK 44: Akuntansi Aktivitas Pengembangan Real Estate.

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PSAK 72

Standar

Lampiran A - Daftar Istilah

Lampiran B – Pedoman Penerapan

Lampiran C – Tanggal Efektif dan Ketentuan

Transasi

Contoh Ilustratif

Lampiran D – Penyesuaian terhadap Pernyataan

Lain

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PSAK 72

• _{tujuan dan ruang lingkup}

Pendahuluan

• _{Identifikasi kontrak, kombinasi kontrak, modifikasi kontrak,}

identifikasi dan penyelesaian kewajiban Pengakuan

• _{Menentukan, mengalokasikan harga transaksi, perubahan}

Pengukuran

• Biaya incremental, pemenuhan kontrak, amortisasi dan penurunan nilai

Biaya Kontrak

Penyajian

Pengungkapan

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Tahapan dalam Pengakuan

Mengidentifikasi kontrak dengan pelanggan ;

Mengindentifikasi kewajiban pelaksanaan;

Menentukan harga transaksi;

Mengalokasikan harga transaksi terhadap

kewajiban pelaksanaan;

Mengakui pendapatan ketika (pada saat) entitas

telah menyelesaikan kewajiban pelaksanaan.

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Tujuan

• _{Menetapkan prinsip tentang sifat, jumlah, waktu, dan}

ketidakpastian pendapatan dan arus kas yang timbul dari

kontrak dengan pelanggan.

• _{Pencapaian tujuan}

– _{Mengakui pendapatan untuk menggambarkan pengalihan barang}

atau jasa yang dijanjikan kepada pelanggan

– _{Mempertimbangkan syarat kontrak serta seluruh fakta dan keadaan}

yang relevan

– _{Untuk kontrak individual dan portfolio kontrak}

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Ruang Lingkup

• _{Untuk seluruh kontrak dengan pelanggan, kecuali:}

a) kontrak sewa - PSAK 30 Sewa;

b) kontrak asuransi - PSAK 62 Kontrak Asuransi;

c) instrumen keuangan - ED PSAK 71: Instrumen Keuangan, PSAK 65: Laporan Keuangan Konsolidasian, PSAK 66: Pengaturan

Bersama, PSAK 4: Laporan Keuangan Tersendiri dan PSAK 15 Investasi pada Entitas Asosiasi dan Ventura Bersama; dan

d) Pertukaran nonmoneter antara entitas dalam lini bisnis yang sama untuk memfasilitasi penjualan kepada pelanggan atau pelanggan potensial  kontrak antara dua perusahaan minyak untuk menukarkan minyak untuk memenuhi permintaan dari pelanggan dalam lokasi yang berbeda secara tepat waktu.

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Pengakuan

Indentifikasi kontrak

Kombinasi kontrak

Modifikasi kontrak

Identifikasi kewajiban pelaksanaan

Penyelesaian kewajiban pelaksanaan

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Mengidentifikan Kontrak

Entitas mencatat kontrak dgn pelanggan hanya jika seluruh kriteria berikut terpenuhi:

a) para pihak dalam kontrak telah menyetujui kontrak (secara tertulis, lisan atau sesuai dengan praktik bisnis pada umumnya) dan

berkomitmen untuk melaksanakan kewajiban mereka masing-masing;

b) entitas dapat mengidentifikasi hak setiap pihak mengenai barang atau jasa yang akan dialihkan;

c) entitas dapat mengidentifikasi jangka waktu pembayaran barang atau jasa yang akan dialihkan;

d) kontrak memiliki substansi komersial (yaitu risiko, waktu, atau

jumlah arus kas masa depan entitas diperkirakan berubah sebagai akibat dari kontrak); dan

e) kemungkinan besar entitas akan menagih imbalan yang akan menjadi haknya dalam pertukaran barang atau jasa yang akan dialihkan ke pelanggan.

Entitas hanya mempertimbangkan kemampuan dan intensi pelanggan untuk membayar jumlah imbalan ketika jatuh tempo. Jumlah imbalan yang akan menjadi hak entitas mungkin lebih kecil dari jumlah yang tercatat dalam kontrak jika imbalan bersifat variabel karena entitas dapat

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Kombinasi Kontrak

• _{Entitas mengombinasikan dua atau lebih kontrak yang}

disepakati dan mencatat kontrak tersebut sebagai kontrak

tunggal jika satu atau lebih kriteria berikut terpenuhi:

a. kontrak dinegosiasikan sebagai satu paket dengan tujuan komersial tunggal;

b. jumlah imbalan yang dibayarkan dalam satu kontrak bergantung pada harga atau pelaksanaan dari kontrak lain; atau

c. barang atau jasa yang dijanjikan dalam kontrak (atau beberapa barang atau jasa yang dijanjikan dalam setiap kontrak)

merupakan kewajiban pelaksanaan tunggal sesuai dengan paragraf 22-30.

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Modifikasi Kontrak

• _{Modifikasi kontrak adalah perubahan dalam ruang lingkup}

atau harga kontrak (atau keduanya) yang disetujui oleh

para pihak dalam kontrak.

• _{Entitas mencatat sebagai kontrak terpisah jika kondisi}

berikut terpenuhi:

– _{ruang lingkup kontrak meningkat karena penambahan barang atau}

jasa yang dijanjikan bersifat dapat dibedakan (distinct) (sesuai dengan paragraf 26-30); dan

– harga kontrak meningkat oleh sejumlah imbalan yang

mencerminkan harga jual berdiri sendiri (stand-alone selling prices) entitas atas penambahan barang atau jasa yang dijanjikan dan

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Modifikasi Kontrak

• _{Jika modifikasi kontrak tidak dicatat sebagai kontrak terpisah, maka entitas mencatat}

barang atau jasa yang dijanjikan yang belum dialihkan pada tanggal modifikasi kontrak dengan cara manapun di bawah ini yang dapat diterapkan:

– _{Entitas mencatat modifikasi kontrak seolah-olah modifikasi kontrak tersebut}

merupakan penghentian kontrak yang ada dan menciptakan kontrak baru, jika sisa barang atau jasa bersifat dapat dibedakan dari barang atau jasa yang dialihkan pada atau sebelum tanggal modifikasi kontrak. Jumlah imbalan yang dialokasikan pada sisa kewajiban pelaksanaan (atau pada sisa barang atau jasa yang bersifat dapat dibedakan dalam kewajiban pelaksanaan tunggal yang diidentifikasikan sesuai dengan paragraf 22(b)) adalah jumlah dari:

• _{(i) imbalan yang dijanjikan oleh pelanggan (termasuk jumlah yang telah}

diterima dari pelanggan) yang tercakup dalam estimasi harga transaksi dan yang belum diakui sebagai pendapatan; dan

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Mengidentifikan Kewajiban Pelaksanaan

• _{Pada awal kontrak, entitas menilai barang atau jasa yang}

dijanjikan dalam kontrak dengan pelanggan dan

mengidentifikasi sebagai kewajiban pelaksanaan setiap janji

untuk mengalihkan kepada pelanggan baik:

a) suatu barang atau jasa (atau sepaket barang atau jasa)

yang bersifat dapat dibedakan; atau

b) serangkaian barang atau jasa yang bersifat dapat

dibedakan yang secara substansial sama dan memiliki

pola pengalihan yang sama kepada pelanggan (lihat

paragraf 23).

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Mengidentifikasi Kewajiban Pelaksanaan

16

• _{Kontrak umumnya secara eksplisit menyatakan barang}

atau jasa yang dijanjikan untuk dialihkan kepada pelanggan.

• _{Akan tetapi, kewajiban pelaksanaan tidak terbatas pada}

barang atau jasa yang secara eksplisit dinyatakan dalam kontrak.

Janji kontrak dengan pelanggan

• _{Penjualan barang yang diproduksi; yang dibeli} • _{Pelaksanaan tugas}

• Penyediaan jasa; jasa pengaturan

• _{Pembaian hak kepada barang dan jasa}

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Barang atau Jasa Bersifat dapat Dibedakan

• _{Barang atau jasa yang dijanjikan kepada pelanggan bersifat dapat} • _{dibedakan jika kedua kriteria berikut terpenuhi:}

a. pelanggan memperoleh manfaat dari barang atau jasa baik

barang atau jasa itu sendiri atau bersama dengan sumber daya lain yang siap tersedia kepada pelanggan (yaitu barang atau jasa yang bersifat dapat dibedakan); dan

b. janji entitas untuk mengalihkan barang atau jasa kepada

pelanggan dapat diidentifikasi secara terpisah dari janji lain dalam kontrak (yaitu janji untuk mengalihkan barang atau jasa yang

bersifat dapat dibedakan dalam konteks kontrak tersebut).

Jika barang atau jasa yang dijanjikan bersifat tidak dapat dibedakan, entitas mengombinasikan barang atau jasa dengan barang atau jasa lain yang dijanjikan sampai entitas mengidentifikasi sepaket barang atau jasa tersebut bersifat dapat dibedakan.

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Penyelesaian Kewajiban Pelaksanaan

18

Kewajiban Pelaksanaan yang Diselesaikan pada Waktu Tertentu

• _{Metode Pengukuran Kemajuan}

• _{Pengukuran Kemajuan yang Rasional}

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Penyelesaian Kewajiban Pelaksanaan

• _{Entitas mengakui pendapatan ketika (atau selama) entitas}

menyelesaikan kewajiban pelaksanaan dengan

mengalihkan barang atau jasa yang dijanjikan (yaitu aset)

kepada pelanggan. Aset dialihkan ketika (atau selama)

pelanggan memperoleh pengendalian atas aset.

• _{Pada awal kontrak entitas menentukan apakah entitas}

menyelesaikan kewajiban pelaksanaan sepanjang waktu

(sesuai dengan paragraf 35-37) atau menyelesaikan

kewajiban pelaksanaan pada suatu waktu tertentu (sesuai

dengan paragraf 38).

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Kewajiban Pelaksanaan yang Diselesaikan Sepanjang

Waktu

(Performance Obligation Over Time)

• Entitas mengalihkan pengendalian barang atau jasa sepanjang waktu dan, oleh karena itu, menyelesaikan kewajiban pelaksanaan dan mengakui pendapatan sepanjang waktu, jika satu dari kriteria berikut terpenuhi:

a. pelanggan secara simultan menerima dan mengonsumsi manfaat yang disediakan oleh kinerja entitas saat entitas melaksanakan kewajiban pelaksanaannya tersebut (lihat paragraf PP03-PP04); b. kinerja entitas menciptakan atau meningkatkan aset (sebagai

contoh, pekerjaan dalam proses) yang dikendalikan pelanggan sebagai aset yang diciptakan atau ditingkatkan (lihat paragraph PP05); atau

c. kinerja entitas tidak menciptakan suatu aset dengan penggunaan alternatif terhadap entitas (lihat paragraf 36) dan entitas memiliki hak yang dapat dipaksakan untuk pembayaran kinerja yang

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Kewajiban Pelaksanaan yang Diselesaikan Pada

Waktu Tertentu

(

Performance Obligation At a Point In Time

)

• _{Jika kewajiban pelaksanaan tidak diselesaikan sepanjang waktu sesuai dengan paragraf}

35-37, maka entitas menyelesaikan kewajiban pelaksanaan pada waktu tertentu.

• _{Untuk menentukan waktu tertentu dimana pelanggan memperoleh pengendalian atas aset}

yang dijanjikan dan entitas menyelesaikan kewajiban pelaksanaan, entitas mempertimbangkan persyaratan pengendalian dalam paragraf 31-34.

• Sebagai tambahan, entitas mempertimbangkan indikator pengalihan pengendalian, yang mencakup, tetapi tidak terbatas pada, hal berikut:

a. Entitas memiliki hak kini atas pembayaran aset

b. Pelanggan memiliki memiliki hak kepemilikan legal

atas aset

c. Entitas telah mengalihkan kepemilikan fisik atas aset

d. Pelanggan memiliki risiko dan manfaat signifikan atas

kepemilikan aset

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Pengukuran

• _{Imbalan Variabel}

• _{Liabilitas Pengemalian}

• _{Estimasi Pematasan Imbalan Variabel} • _{Penentuan kembali Imbalan Variabel}

• Keberadaan Komponan Pendanaan Signifikan dalam Kontrak

• _{Imbalan Non Kas}

• _{Uang Imbalan kepada Pelanggan}

Menentukan harga transaksi

Mengalokasikan harga transaksi terhadap kewajiban Pelaksanaan

Perubahan dalam Harga Transaksi

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Menentukan Harga Transaksi

• _{Ketika (atau selama) kewajiban pelaksanaan diselesaikan, entitas}

mengakui pendapatan atas sejumlah harga transaksi (yang tidak

termasuk estimasi atas imbalan variabel yang dibatasi sesuai dengan paragraf 56-58) yang dialokasikan terhadap kewajiban pelaksanaan. Menentukan Harga Transaksi

• Entitas mempertimbangkan syarat kontrak dan praktik bisnis umum entitas untuk menentukan harga transaksi. Harga transaksi adalah jumlah imbalan yang diperkirakan menjadi hak entitas dalam

pertukaran untuk mengalihkan barang atau jasa yang dijanjikan kepada pelanggan, tidak termasuk jumlah yang ditagih atas nama pihak ketiga (sebagai contoh, beberapa pajak penjualan). Imbalan yang dijanjikan dalam kontrak dengan pelanggan dapat mencakup jumlah tetap, jumlah variabel, atau keduanya.

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Menentukan Harga Transaksi

• _{Entitas mempertimbangkan syarat kontrak dan praktik bisnis umum}

entitas untuk menentukan harga transaksi. Sifat, waktu, dan jumlah imbalan yang dijanjikan oleh pelanggan mempengaruhi estimasi harga transaksi.

• _{Ketika menentukan harga transaksi, entitas mempertimbangkan}

dampak dari seluruh hal berikut:

a. imbalan variabel (lihat paragraf 50-55 dan 59);

b. estimasi pembatas imbalan variabel (lihat paragraf 56-58); c. keberadaan komponen pendanaan signifikan dalam kontrak

(lihat paragraf 60-65);

d. imbalan nonkas (lihat paragraf 66-69); dan

e. utang imbalan kepada pelanggan (lihat paragraf 70-72).

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Mengalokasikan Harga Transaksi terhadap

Kewajiban Pelaksanaan

• _{Tujuan ketika mengalokasikan harga transaksi adalah}

entitas mengalokasikan harga transaksi terhadap setiap

kewajiban pelaksanaan (atau barang atau jasa bersifat

dapat dibedakan) dalam jumlah yang menggambarkan

jumlah imbalan yang diharapkan menjadi hak entitas

dalam pertukaran untuk mengalihkan barang atau jasa

yang dijanjikan kepada pelanggan.

• _{Untuk memenuhi tujuan alokasi, entitas mengalokasikan}

harga transaksi terhadap setiap kewajiban pelaksanaan

yang diidentifikasi dalam kontrak dengan dasar harga jual

berdiri sendiri relatif (

relative stand-alone selling price

)

sesuai dengan paragraf 76-80, kecuali diatur khusus

dalam paragraf 81-83 (untuk alokasi diskon) dan paragraf

84-86 (untuk alokasi

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Biaya Kontrak

Biaya inkremantal atas Perolehan Kontrak

Biaya Pemenuhan Kontrak

Amortisasi dan Penurunan Nilai

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Penyajian

• _{Ketika salah satu pihak dalam kontrak telah}

melaksanakan, entitas menyajikan kontrak dalam laporan

posisi keuangan sebagai aset kontrak atau liabilitas

kontrak, bergantung pada hubungan antara kinerja entitas

dan pembayaran pelanggan. Entitas menyajikan hak tanpa

syarat terhadap imbalan secara terpisah sebagai piutang

.

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Pengungkapan

• _{Tujuan persyaratan pengungkapan adalah agar entitas}

mengungkapkan informasi yang cukup yang memungkinkan

pengguna laporan keuangan memahami sifat, jumlah, waktu dan ketidakpastian pendapatan dan arus kas yang timbul dari kontrak dengan pelanggan. Untuk mencapai tujuan tersebut, entitas

mengungkapkan informasi kualitatif dan kuantitatif tentang seluruh hal berikut:

a. kontrak dengan pelanggan (lihat paragraf 113-122);

b. pertimbangan signifikan dan perubahan dalam pertimbangan, yang dibuat dalam menerapkan Pernyataan ini terhadap kontrak tersebut (lihat paragraf 123-126); dan

c. aset yang diakui dari biaya untuk memperoleh atau memenuhi kontrak dengan pelanggan sesuai dengan paragraf 91 atau 95 (lihat paragraf 127-128).

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Pengungkapan

• _{Kontrak dengan Pelanggan}

– Pemisahan Pendapatan

– Saldo Kontrak

– _{Kewajiban Pelaksanaan}

– _{Harga Transaksi yang Dialokasikan terhadap Sisa Kewajiban}

Pelaksanaan

• _{Pertimbangan Signifikan dalam Penerapan Pernyataan}

Ini

– _{Menentukan Waktu Penyelesaian Kewajiban Pelaksanaan}

– _{Menentukan harga transaksi dan jumlah yang dialokasikan untuk}

kewajiban pelaksanaan

• _{Aset yang Diakui dari Biaya untuk Memperoleh atau}

Memenuhi Kontrak dengan Pelanggan

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Tanggal Efektif

• _{Entitas menerapkan Pernyataan ini untuk periode tahun}

buku yang dimulai pada atau setelah 1 Januari 2019.

Penerapan dini diperkenankan.

• _{Jika entitas menerapkan Pernyataan ini lebih dini, maka}

entitas mengungkapkan fakta tersebut.

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Ketentuan Transisi (Paragraf C02-C08)

• _{Entitas menerapkan Pernyataan ini menggunakan satu}

dari dua metode berikut:

a. secara retrospektif untuk setiap periode pelaporan

sajian sebelumnya sesuai dengan PSAK 25:

Kebijakan Akuntansi, Perubahan Estimasi Akuntansi,

dan Kesalahan

tunduk pada panduan (

expedients

)

dalam paragraf C05; atau

b. secara retrospektif dengan dampak kumulatif atas

penerapan secara awal Pernyataan ini diakui pada

tanggal penerapan awal sesuai dengan paragraf

C07-C08.

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Pedoman Penerapan

a. Pemisahaan Pendapatan

b. kewajiban pelaksanaan diselesaikan sepanjang waktu

(paragraph PP2-PP13);

c. metode untuk mengukur kemajuan terhadap

penyelesaian kewajiban pelaksanaan secara penuh

(paragraf PP14-PP19);

d. penjualan dengan hak retur (paragraf PP20-PP27);

e. garansi (paragraf PP28-PP33);

f. imbalan prinsipal dibandingkan dengan agen (paragraf

PP34-PP38);

g. opsi pelanggan untuk tambahan barang atau jasa

(paragraph PP39-PP43);

h. hak pelanggan yang tidak dilaksanakan (paragraf

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Pedoman Penerapan

i. biaya dibayar di muka yang tidak dapat dikembalikan

(dan beberapa biaya terkait) (paragraf PP48-PP51);

j. lisensi (paragraf PP52-PP63B);

k. perjanjian pembelian kembali (paragraf PP64-PP76)

l. pengaturan konsinyasi (paragraf PP77-PP78);

m. pengaturan

bill-and-hold

(paragraf PP79-PP82);

n. penerimaan pelanggan (paragraf PP83-PP86); dan

o. pengungkapan pemisahan pendapatan (paragraf

PP87-PP89).

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Contoh

MENGIDENTIFIKASI KONTRAK CI02

• _{Contoh 1 – Kolektabilitas Imbalan}

• _{Contoh 2 – Imbalan Bukan Berdasarkan Harga Tertulis – Konsesi}

Harga Implisit

• Contoh 3 – Konsesi Harga Implisit

• Contoh 4 – Penilaian Kembali Kriteria untuk Mengidentifikasi Kontrak

MODIFIKASI KONTRAK CI18

• Contoh 5 – Modifikasi Kontrak untuk Barang

• _{Contoh 6 – Perubahan Harga Transaksi Setelah Modifikasi Kontrak} • _{Contoh 7 – Modifikasi Kontrak Jasa}

• _{Contoh 8 – Modifikasi yang Menghasilkan Penyesuaian}_{Catch Up}

Kumulatif Terhadap Pendapatan

• _{Contoh 9 – Perubahan dalam Ruang Lingkup dan Harga yang Tidak}

Disetujui

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Contoh

MENGIDENTIFIKASI KEWAJIBAN PELAKSANAAN CI44

• _{Contoh 10 – Barang dan Jasa Tidak Bersifat Dapat Dibedakan}

• _{Contoh 11 – Menentukan Apakah Barang atau Jasa Bersifat Dapat}

Dibedakan

• Contoh 12 – Janji Eksplisit dan Implisit dalam Kontrak

KEWAJIBAN PELAKSANAAN YANG DISELESAIKAN SEPANJANG WAKTU CI66

• Contoh 13 – Pelanggan Menerima dan Mengonsumsi Manfaat Secara Simultan

• Contoh 14 – Menilai Penggunaan Alternatif dan Hak atas Pembayaran

• _{Contoh 15 – Aset yang Tidak Memiliki Penggunaan Alternatif Bagi}

Entitas

• _{Contoh 16 – Hak yang Dapat Dipaksakan atas Pembayaran}

Pelaksanaan yang Diselesaikan Sampai Saat Ini

• _{Contoh 17 – Penilaian Apakah Kewajiban Pelaksanaan Diselesaikan}

Pada Waktu Tertentu atau Sepanjang Waktu

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Contoh

MENGUKUR KEMAJUAN TERHADAP PENYELESAIAN KEWAJIBAN PELAKSANAAN SECARA PENUH CI91

• _{Contoh 18 – Mengukur Kemajuan Ketika Membuat Barang atau Jasa}

Tersedia

• Contoh 19 – Bahan Baku Belum Terpakai

IMBALAN VARIABEL CI101

• Contoh 20 – Denda Menyebabkan Kenaikan Imbalan Variabel

• Contoh 21 – Mengestimasi Imbalan Variabel

MEMBATASI ESTIMASI IMBALAN VARIABEL CI109

• _{Contoh 22 – Hak Pengembalian} • _{Contoh 23 – Konsesi Harga}

• _{Contoh 24 – Insentif Diskon Berdasarkan Volume}

• _{Contoh 25 –}_Fees_{Manajemen yang Bergantung pada Pembatasan}

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Contoh

• _{KEBERADAAN KOMPONEN KEUANGAN SIGNIFIKAN DI DALAM}

KONTRAK CI134

• _{Contoh 26 – Komponen Keuangan Signifikan dan Hak Pengembalian} • Contoh 27 – Pembayaran Ditahan Dalam Kontrak Jangka Panjang

• Contoh 28 – Menentukan Tingkat Diskonto

• Contoh 29 – Pembayaran di Muka dan Penilaian Tingkat Diskonto

• Contoh 30 – Pembayaran di Muka

IMBALAN NONKAS CI155

• _{Contoh 31 – Pemberian Hak atas Imbalan Nonkas}

UTANG IMBALAN KEPADA PELANGGAN CI159

• _{Contoh 32 – Utang Imbalan Kepada Pelanggan}

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Contoh

• _{MENGALOKASIKAN HARGA TRANSAKSI KEPADA KEWAJIBAN}

PELAKSANAAN CI163

• _{Contoh 33 – Metodologi Alokasi}

• Contoh 34 – Mengalokasikan Diskon

• Contoh 35 – Alokasi Imbalan Variabel

BIAYA KONTRAK CI188

• Contoh 36 – Biaya Inkremental dalam Memperoleh Kontrak

• Contoh 37 – Biaya yang Menyebabkan Kenaikan Aset

PENYAJIAN CI197

• _{Contoh 38 – Liabilitas dan Piutang Kontrak}

• _{Contoh 39 – Aset Kontrak Diakui untuk Pelaksanaan Entitas} • _{Contoh 40 – Piutang Diakui atas Pelaksanaan Entitas}

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Contoh

PENGUNGKAPAN CI209

• _{Contoh 41 – Pemisahan Pendapatan – Pengungkapan Kuantitatif} • _{Contoh 42 – Pengungkapan Harga Transaksi yang Dialokasikan ke}

Sisa Kewajiban Pelaksanaan

• GARANSI CI222

• Contoh 44 – Garansi

IMBALAN PRINSIPAL DIBANDINGKAN DENGAN IMBALAN AGEN CI230

• _{Contoh 45 – Mengatur Provisi Barang atau Jasa (Entitas merupakan}

Agen)

• _{Contoh 46 – Janji untuk Menyediakan Barang atau Jasa (Entitas}

merupakan Prinsipal)

• _{Contoh 46A - Janji untuk Menyediakan Barang atau Jasa (Prinsipal)} • _{Contoh 47 – Janji untuk Menyediakan Barang atau Jasa (Prinsipal)} • _{Contoh 48 – Mengatur Provisi Barang atau Jasa (Entitas merupakan}

Agen)

• _{Contoh 48A}_–_{Entitas merupakan Prinsipal dan Agen dalam Kontrak}

yang Sama

(40)

Contoh

OPSI PELANGGAN ATAS BARANG DAN JASA TAMBAHAN CI249

• _{Contoh 49 – Opsi yang Memberikan Pelanggan Hak Material (Voucher}

Diskon)

• _{Contoh 50 – Opsi yang Tidak Memberikan Pelanggan Hak yang} • Bersifat Material (Tambahan Barang atau Jasa)

• Contoh 51 – Opsi yang Memberikan Pelanggan Hak Material (Opsi Pembaharuan)

• Contoh 52 – Program Loyalitas Pelanggan

FEES DIMUKA YANG TIDAK DAPAT DIKEMBALIKAN CI271

• _{Contoh 53 –}_Fee_{Dimuka yang Tidak Dapat Dikembalikan}

(41)

Contoh

LISENSI CI275

• _{Contoh 54 – Hak Menggunakan Kekayaan Intelektual} • _{Contoh 55 – Lisensi Kekayaan Intelektual}

• Contoh 56 – Mengidentifikasi Lisensi yang Bersifat Dapat dibedakan

• Contoh 57 – Hak Waralaba

• Contoh 58 – Akses ke Lisensi Intelektual

• Contoh 59 – Hak Menggunakan Kekayaan Intelektual

• Contoh 60 – Royalti Berbasis Penjualan untuk Lisensi Kekayaan Intelektual

• _{Contoh 61 – Akses Kekayaan Intelektual}

PERJANJIAN JUAL BELI KEMBALI CI314

• _{Contoh 62 – Perjanjian Jual Beli Kembali}

PENGATURAN BILL-AND-HOLD CI322

(42)

LO 5

Determining Transaction Price—Step 3

Time Value of Money



When contract (sales transaction) involves a significant

financing component.

► _{Interest accrued on consideration to be paid over}

time.

► _{Fair value determined either by measuring the}

consideration received or by discounting the payment using an imputed interest rate.

► _{Company reports as interest expense or interest}

(43)

Facts: On July 1, 2015, SEK Company sold goods to Silva Company for R$900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of R$1,416,163. The goods have a cost on SEK’s books of R$590,000.

LO 5

Time Value of Money

EXTENDED PAYMENT TERMS

Questions: (a) How much revenue should SEK Company record on July 1, 2015? (b) How much revenue should it report related to this transaction on December 31, 2015?

Entry to record SEK’s sale to Silva Company on July 1, 2015, is as follows.

Notes Receivable 1,416,163 Sales Revenue 900,000

Discount on Notes Receivable 516,163

Cost of Goods Sold 590,000 Inventory 590,000

ILLUSTRATION 18-12

Transaction Price

(44)

LO 5

Time Value of Money

EXTENDED PAYMENT TERMS

Questions: (a) How much revenue should SEK Company record on July 1, 2015? (b) How much revenue should it report related to this transaction on December 31, 2015?

Entry to record interest revenue at the end of the year, December 31, 2015.

Discount on Notes Receivable 54,000

Interest Revenue (12% x ½ x $900,000) 54,000

Companies are not required to reflect the time value of money if the time period for payment is less than a year.

Transaction Price

-Extended Payment Terms

(45)

LO 5

Determining Transaction Price—Step 3

Non-Cash Consideration

Goods, services, or other non-cash consideration.



Companies sometimes receive contributions (e.g.,

donations and gifts).



Customers sometimes contribute goods or services,

such as equipment or labor, as consideration for goods

provided or services performed.



Companies generally recognize revenue on the basis

(46)

LO 5

Determining Transaction Price—Step 3

Consideration Paid or Payable to Customers



May include discounts, volume rebates, coupons, free

products, or services.



In general, these elements reduce the consideration

(47)

Facts: Sansung Company offers its customers a 3% volume discount if they

purchase at least ¥2 million of its product during the calendar year. On March 31, 2015, Sansung has made sales of ¥700,000 to Artic Co. In the previous 2 years, Sansung sold over ¥3,000,000 to Artic in the period April 1 to December 31.

LO 5

Consideration Paid or Payable

VOLUME DISCOUNT

Questions: How much revenue should Sansung recognize for the first 3 months of 2015?

Sansung makes the following entry on March 31, 2015.

Accounts Receivable 679,000 Sales Revenue 679,000

Sansung should reduce its revenue by ¥21,000 (¥700,000 x 3%) because it is probable that it will provide this rebate.

(48)

LO 5

Questions: How much revenue should Sansung recognize for the first 3 months of 2015?

Assuming Sansung’s customer meets the discount threshold, Sansung makes the following entry.

Cash 679,000

Accounts Receivable 679,000

If Sansung’s customer fails to meet the discount threshold, Sansung makes the following entry upon payment.

Cash 700,000

Accounts Receivable 679,000 Sales Discounts Forfeited 21,000

(49)

LO 6

Allocating Transaction Price to Separate

Performance Obligations—Step 4



Based on their relative fair values.



Best measure of fair value is what the company could

sell the good or service for on a standalone basis.



If not available, companies should use their best

(50)

LO 6

Allocating Transaction Price to Separate

Performance Obligations—Step 4

(51)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Company satisfies its performance obligation when the

customer obtains control of the good or service.

Change in Control Indicators

1. Company has a right to payment for asset.

2. Company has transferred legal title to asset.

(52)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Recognizing revenue from a performance obligation over

time



Measure progress toward completion

► _{Method for measuring progress should depict transfer}

of control from company to customer.

► _{Most common are cost-to-cost and units-of-delivery}

methods.

► _{Objective of methods is to measure extent of progress}

(53)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Step in Process

1. Identify the contract with customers.

Description

A contract is an

agreement that creates enforceable rights or obligations.

Implementation

A company applies the revenue guidance to contracts with

customers and must determine if new performance obligations are created by a contract

modification.

(54)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Step in Process

2. Identify the separate

A performance obligation is a promise in a contract to provide a product or service to a customer. A performance obligation exists if the customer can benefit from the good or service on its own or

together with other readily available resources.

Implementation

A contract may be comprised of multiple performance

obligations.

Accounting is based on evaluation of whether the product or service is distinct within the contract.

If each of the goods or services is distinct, but is interdependent and interrelated, these goods and services are combined and reported as one performance obligation.

(55)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Step in Process

Transaction price is the amount of consideration that a company expects to receive from a customer in exchange for

transferring goods and services.

Implementation

In determining the transaction price, companies must consider the following factors:

1. variable consideration, 2. time value of money,

3. Non-cash consideration, and 4. consideration paid or

payable to customer.

(56)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Step in Process

4. Allocate the transaction exists, allocate the

transaction price based on relative fair values.

Implementation

The best measure of fair value is what the good service could be sold for on a standalone

basis (standalone selling price). Estimates of standalone selling price can be based on

1. adjusted market assessment,

2. expected cost-plus a margin approach, or

3. a residual approach.

(57)

LO 7

Recognizing Revenue When (or as) Each

Performance Obligation Is Satisfied-Step 5

Step in Process

A company satisfies its performance obligation when the customer obtains control of the good or service.

Implementation

Companies satisfy performance obligations either at a point in time or over a period of time. Companies recognize revenue over a period of time if

1. the customer controls the asset as it is created or

2. the company does not have an alternative use for the asset.

(58)

Right of Return

LO 8



Right of return

is granted for product for various

reasons (e.g., dissatisfaction with product).



Company returning the product receives any

combination of the following.

1. Full or partial refund of any consideration paid.

2. Credit that can be applied against amounts owed,

or that will be owed, to the seller.

(59)

Facts: Venden Company sells 100 products for €100 each to Amaya Inc. for cash. Venden allows Amaya to return any unused product within 30 days and receive a full refund. The cost of each product is €60. To determine the transaction price, Venden decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the most likely amount. Using the most likely amount, Venden estimates that:

1. Three products will be returned.

2. The costs of recovering the products will be immaterial. 3. The returned products are expected to be resold at a profit.

LO 8

RIGHT OF RETURN

Question: How should Venden record this sale?

Recognition—Right of Return

(60)

Venden records the sale as follows with the expectation that three

products will be returned:

LO 8

Venden records the cost of goods sold with the following entry.

Cost of Goods Sold 5,820

(61)

When a return occurs, Venden records the following entries.

LO 8

Recognition—Right of Return

Right of Return

Refund Liability (2 x €100) 200 Accounts Payable 200

Returned Inventory (2 x €60) 120

Estimated Inventory Returns 120

(62)

Repurchase Agreements

LO 8



Transfer control of (sell) an asset to a customer but

have an obligation or right to repurchase

.



If obligation or right to repurchase is for an amount

(63)

Facts: Morgan Inc., an equipment dealer, sells equipment on January 1, 2015, to Lane Company for £100,000. It agrees to repurchase this

equipment on December 31, 2016, for a price of £121,000.

LO 8

REPURCHASE AGREEMENT

Question: How should Morgan Inc. record this transaction?

Recognition—Repurchase Agreement

Repurchase Agreements

Assuming an interest rate of 10 percent is imputed from the agreement,

Morgan makes the following entry to record the financing on January 1, 2015.

Cash 100,000

(64)

LO 8

Recognition—Repurchase Agreement

Repurchase Agreements

Morgan Inc. records interest on December 31, 2016, as follows.

Interest Expense 10,000

Liability to Lane Company (£100,000 x 10%) 10,000

Question: How should Morgan Inc. record this transaction?

Morgan Inc. records interest and retirement of its liability to Lane Company on December 31, 2016, as follows.

Interest Expense 11,000

Liability to Lane Company (£110,000 x 10%) 11,000

Liability to Lane Company 121,000

(65)

Bill-and-Hold Arrangements

LO 8



Contract under which an entity bills a customer for a

product but the entity retains physical possession of

the product until a point in time in the future.



Result when buyer is not yet ready to take delivery but

(66)

Facts: Kaya Company sells 450,000 (cost 280,000) of fireplaces on ₺ ₺

March 1, 2015, to a local coffee shop, Baristo, which is planning to expand its locations around the city. Under the agreement, Baristo asks Kaya to retain these fireplaces in its warehouses until the new coffee shops that will house the fireplaces are ready. Title passes to Baristo at the time the

agreement is signed.

LO 8

BILL AND HOLD

Question: When should Kaya recognize the revenue from this bill-and-hold arrangement?

Recognition—Bill and Hold

Kaya determines when it has satisfied its performance obligation to transfer a product by evaluating when Baristo obtains control of that product.

(67)

LO 8

For Baristo to have obtained control of a product in a bill-and-hold arrangement, all of the following criteria should be met:

(a) The reason for the bill-and-hold arrangement must be substantive. (b) The product must be identified separately as belonging to Baristo. (c) The product currently must be ready for physical transfer to Baristo.

(d) Kaya cannot have the ability to use the product or to direct it to another customer.

In this case, it appears that the above criteria were met, and therefore

(68)

LO 8

Bill-and-Hold Arrangements

Kaya makes the following entry to record the sale.

Accounts receivable 450,000 Sales Revenue 450,000

Kaya makes an entry to record the related cost of goods sold as follows.

(69)

Principal-Agent Relationships

LO 8

 Agent’s performance obligation is to arrange for principal to

provide goods or services to a customer.

 Examples:

► _{Preferred Travel Company (agent) facilitates the booking}

of cruise excursions by finding customers for Regency Cruise Company (principal).

► _Priceline_{(USA) (agent) facilitates the sale of various}

services such as car rentals at Hertz (USA) (principal).

 Amounts collected on behalf of the principal are not

revenue of the agent.

(70)

(71)

Consignments

LO 8



Manufacturers (or wholesalers) deliver goods but

retain

title to the goods

until they are sold.



Consignor

(manufacturer or wholesaler) ships

merchandise to the consignee (dealer), who is to act as

an agent for the consignor in selling the merchandise.



Consignor

makes a profit on the sale.

► _{Carries merchandise as inventory.}

(72)

LO 8

Recognition—Sales on Consignment

(73)

LO 8

Recognition—Sales on Consignment

(74)

Warranties

LO 8

Two types of

warranties

to customers:

1. Product meets agreed-upon specifications in contract at

time product is sold.

a. Warranty is included in sales price (assurance-type warranty).

2. Not included in sales price of product (

service-type warranty

).

(75)

Facts: Maverick Company sold 1,000 Rollomatics during 2015 at a total price of $6,000,000, with a warranty guarantee that the product was free of any defects. The cost of Rollomatics sold is $4,000,000. The term of the assurance warranty is two years, with an estimated cost of $30,000. In

addition, Maverick sold extended warranties related to 400 Rollomatics for 3 years beyond the 2-year period for $12,000.

WARRANTIES

Question: What are the journal entries that Maverick Company should make in 2015 related to the sale and the related warranties?

Performance Obligations and Warranties

Warranties

(76)

Cash ($6,000,000 + $12,000) 6,012,000 Warranty Expense 30,000

Warranty Liability 30,000

Unearned Warranty Revenue 12,000 Sales Revenue 6,000,000

Cost of Goods Sold 4,000,000 Inventory 4,000,000

Question: What are the journal entries that Maverick Company should make in 2015 related to the sale and the related warranties?

Performance Obligations and Warranties

Warranties

To record the revenue and liabilities related to the warranties:

To reduce inventory and recognize cost of goods sold:

(77)

Non-Refundable Upfront Fees

LO 8



Payments from customers before

►

_{Delivery of a product.}

►

_{Performance of a service.}



Generally relate to initiation, activation, or setup of a

good or service to be provided or performed in the

future.



Most cases, upfront payments are nonrefundable.

►

_{Examples include:}



Membership fee in a health club.

(78)

Presentation

PRESENTATION AND DISCLOSURE

LO 9

Contract Assets and Liabilities



Contract assets

_{are of}

_{two types}

_:

1. Unconditional rights

to receive consideration

because company has satisfied its performance

obligation.

2. Conditional

rights

to receive consideration

(79)

Facts: On January 1, 2015, Finn Company enters into a contract to transfer Product A and Product B to Obermine Co. for €100,000. The contract

specifies that payment of Product A will not occur until Product B is also delivered. In other words, payment will not occur until both Product A and Product B are transferred to Obermine. Finn determines that standalone prices are €30,000 for Product A and €70,000 for Product B. Finn delivers Product A to Obermine on February 1, 2015. On March 1, 2015, Finn

delivers Product B to Obermine.

LO 9

CONTRACT ASSET

Question: What journal entries should Finn Company make in regards to this contract in 2015?

Contract Asset Recognition and Presentation

(80)

Contract Asset 30,000

Sales Revenue 30,000

Question: What journal entries should Finn Company make in regards to this contract in 2015?

On February 1, 2015, Finn records the following entry:

On February 1, Finn does not record an accounts receivable because it does not have an unconditional right to receive the €100,000 unless it also

transfers Product B to Obermine. When Finn transfers Product B on March 1, 2015, it makes the following entry.

LO 9

Contract Asset Recognition and Presentation

(81)

Facts: On March 1, 2015, Henly Company enters into a contract to transfer a product to Propel Inc. on July 31, 2015. It is agreed that Propel will pay the full price of $10,000 in advance on April 1, 2015. The contract is

non-cancelable. Propel, however, does not pay until April 15, 2015, and Henly delivers the product on July 31, 2015. The cost of the product is

$7,500.

LO 9

CONTRACT LIABILITY

Question: What journal entries are required in 2015?

Contract Liability Recognition and Presentation

No entry is required on March 1, 2015:

► _{Neither party has performed on the contract.}

► _{Neither party has an unconditional right as of March 1, 2015.}

(82)

LO 9

Question: What journal entries are required in 2015?

Cash 10,000

Unearned Sales Revenue 10,000

On receiving the cash on April 15, 2015, Henly records the following entry.

Unearned Sales Revenue 10,000 Sales Revenue 10,000

On satisfying the performance obligation on July 31, 2015, Henly records the following entry to record the sale.

Contract Liability Recognition and Presentation

Cost of Good Sold 7,500 Inventory 7,500

(83)

LO 9

Costs to Fulfill a Contract



Companies divide fulfillment costs (contract

acquisition costs) into two categories:

1. Those that give rise to an asset.

2. Those that are expensed as incurred.

(84)

LO 9

Collectibility



Credit risk that a customer will be unable to pay in

accordance with the contract.

►

_{Whether a company will get paid is not a}

consideration in determining revenue recognition.

►

_{Amount recognized as revenue is not adjusted for}

customer credit risk.

(85)

Disclosure

LO 9

Companies disclose qualitative and quantitative

information about the following:



Contracts with customers.



Significant judgments.



Assets recognized from costs incurred to fulfill a

(86)

Disclosure

LO 9

Companies provide a range of disclosures:



Disaggregation of revenue.



Reconciliation of contract balances.



Remaining performance obligations.



Cost to obtain or fulfill contracts.



Other qualitative disclosures.

► _{Significant judgments and changes in them.}

► _{Minimum revenue not subject to variable}

(87)

REVENUE RECOGNITION OVER TIME

Under certain circumstances companies recognize

revenue over time.

The most notable context in which revenue may be

recognized over time is

long-term construction contract

accounting

.

LO 10 Apply the percentage-of-completion method for long-term contracts.

(88)

REVENUE RECOGNITION OVER TIME

Long-term contracts frequently provide that seller (builder)

may bill purchaser at intervals.

►

_Examples:

 Development of military and commercial aircraft

 Weapons-delivery systems

 Space exploration hardware

LO 10

(89)

REVENUE RECOGNITION OVER TIME

A company recognizes revenue over time if

at least one

of

the following two criteria is met:

1. Company’s performance creates or enhances an asset

(e.g., work in process) that the customer controls as the

asset is created or enhanced; or

2. Company’s performance does not create an asset with

an alternative use. In addition…

LO 10

(90)

REVENUE RECOGNITION OVER TIME

In addition

at least one of the following criteria must be met:

a. The customer simultaneously receives and consumes the benefits of the entity’s performance as the entity performs. b. Another company would not need to substantially re-perform

the work the company has completed to date if that other company were to fulfill the remaining obligation to the customer.

c. The company has a right to payment for its performance completed to date, and it expects to fulfill the contract as promised.

LO 10

(91)

If criterion 1 or 2

is met, then a company recognizes

revenue over time if it can reasonably estimate its progress

toward satisfaction of the performance obligations.

 Company recognizes revenues and gross profits each

period based upon the progress of the construction— referred to as the percentage-of-completion method.

 If criteria are not met, the company recognizes revenues

and gross profit when the contract is completed, referred to as the cost-recovery (zero-profit) method.

LO 10

APPENDIX

18A

LONG-TERM CONSTRUCTION CONTRACTS

(92)

Measuring the Progress Toward Completion

Most popular input measure used to determine the progress

toward completion is the cost-to-cost basis.

LO 10

APPENDIX

18A

LONG-TERM CONSTRUCTION CONTRACTS

(93)

LO 10

Percentage-of-Completion Method

Revenue to Recognized Cost-to-Cost Basis

ILLUSTRATION 18A-1

(94)

Illustration: Hardhat Construction Company has a contract to construct a £4,500,000 bridge at an estimated cost of

£4,000,000. The contract is to start in July 2015, and the bridge is to be completed in October 2017. The following data pertain to the construction period.

LO 10

(95)

LO 10

(96)

LO 10

(97)

Illustration: Percentage-of-Completion Revenue, Costs, and Gross Profit by Year

LO 10

(98)

PERCENTAGE-OF-COMPLETION

METHOD

APPENDIX 18A

(99)

Illustration: Content of Construction in Process Account— Percentage-of-Completion Method

LO 10

(100)

Financial Statement

Presentation—Percentage-of-Completion

Computation of Unbilled Contract Price at 12/31/15

LO 10

(101)

Financial Statement

Presentation—Percentage-of-Completion Method (2015)

LO 10

(102)

LO 10

APPENDIX

18A

PERCENTAGE-OF-COMPLETION METHOD

Financial Statement

Presentation—Percentage-of-Completion Method (2016)

(103)

This method recognizes revenue only to the extent of costs

incurred that are expected to be recoverable. Only after all costs

are incurred is gross profit recognized.

LO 11 Apply the cost-recovery method for long-term contracts.

Cost-Recovery (Zero-Profit) Method

(104)

APPENDIX

18A

COST-RECOVERY (ZERO-PROFIT) METHOD

LO 11

Illustration: Hardhat Construction would report the following revenues and costs for 2015–2017.

(105)

APPENDIX

18A

LO 11

ILLUSTRATION 18A-14 Cost-Recovery Method Revenue, Costs, and Gross Profit by Year

ILLUSTRATION 18A-15 Journal Entries—

(106)

APPENDIX

18A

LO 11

Cost-Recovery Method Revenue, Costs, and Gross Profit by Year

(107)

APPENDIX

18A

LO 11

(108)

1. Loss in Current Period on a Profitable Contract

► _{Percentage-of-completion method only, the estimated}

cost increase requires a current-period adjustment of gross profit recognized in prior periods.

2. Loss on an Unprofitable Contract

► _{Under both percentage-of-completion and}

cost-recovery methods, the company must recognize in the current period the entire expected contract loss.

Long-Term Contract Losses

LO 12 Identify the proper accounting for losses on long-term contracts.

(109)

Prepare the journal entries to record revenue and expense for 2014, 2015, and 2016 assuming the estimated cost to complete at the end of 2015 was

$215,436.

Prepare the journal entries to record revenue and expense for 2014, 2015, and 2016 assuming the estimated cost to complete at the end of 2015 was

$215,436.

Casper Construction Co.

Illustration:

Loss in Current Period

Advance slide in presentation mode to reveal answers. LO 12

(110)

LO 12

Illustration:

Loss in Current Period

(111)

LO 12

Illustration:

Loss in Current Period

(112)

Prepare the journal entries for 2014, 2015, and 2016 assuming the estimated cost to complete at the end of 2015 was $246,038 instead of $170,100.

Casper Construction Co.

Illustration:

Loss on Unprofitable Contract

LO 12

(113)

$675,000 – 683,438 = (8,438) cumulative loss LO 12

APPENDIX

18A

LONG-TERM CONTRACT LOSSES

(114)

LO 12

APPENDIX

18A

(115)

For the

Cost-Recovery

method, companies would recognize the

following loss :

LO 12

APPENDIX

18A

(116)

Franchises

Four types

of franchising arrangements have evolved:

1. Manufacturer-retailer

2. Manufacturer-wholesaler

3. Service sponsor-retailer

4. Wholesaler-retailer

LO 13 Explain revenue recognition for franchises.

(117)

Two sources of revenue:

1. Sale of initial franchises and related assets or services,

and

2. Continuing fees based on the operations of franchises.

Franchises

LO 13

(118)

The

franchisor

normally provides the

franchisee

with:

1. Assistance in site selection 2. Evaluation of potential income

3. Supervision of construction activity

4. Assistance in the acquisition of signs, fixtures, and equipment 5. Bookkeeping and advisory services

6. Employee and management training

7. Quality control

8. Advertising and promotion

Franchises

LO 13

(119)

Performance obligations relate to:



Right to open a business.



Use of trade name or other intellectual property of the

franchisor.



Continuing services, such as marketing help, training, and

in some cases supplying inventory and inventory

management.

FRANCHISE ACCOUNTING

LO 13

(120)

Franchisors commonly charge an i

nitial franchise fee and

continuing franchise fees:

► _{Initial franchise fee}_{(payment for establishing the relationship}

and providing some initial services).

► _{Continuing franchise fees}_received

 In return for continuing rights granted by the agreement.  For providing management training, advertising and

promotion, legal assistance, and other support.

LO 13

APPENDIX

18B

REVENUE RECOGNITION FOR FRANCHISES

(121)

Facts: Tum’s Pizza Inc. enters into a franchise agreement on November 1, 2015, giving Food Fight Corp. the right to operate as a franchisee of Tum’s Pizza for 5 years. Tum’s charges Food Fight an initial franchise fee of

$50,000 for the right to operate as a franchisee. Of this amount, $20,000 is payable when Food Fight signs the agreement, and the balance is payable in five annual payments of $6,000 each on December 31. Food Fight also promises to pay ongoing royalty payments of 1% of its annual sales

(payable each January 31 of the following year) and is obliged to purchase products from Tum’s at its current standalone selling prices at the time of purchase. The credit rating of Food Fight indicates that money can be borrowed at 8%. The present value of an ordinary annuity of five annual receipts of $6,000 each discounted at 8% is $23,957. The discount of $6,043 represents the interest revenue to be accrued by Tum’s over the payment period.

LO 13

(122)

Rights to the trade name, market area, and proprietary

know-how for 5 years are not individually distinct.

 Each one is not sold separately and cannot be used with other

goods or services that are readily available to the franchisee.

 Combined rights give rise to a single performance obligation.

 Tum’s satisfies performance obligation at point in time when

Food Fight obtains control of the rights.

LO 13

Identify the performance obligations and the point in time when the performance obligations are satisfied and revenue is recognized.

(123)

Training services and equipment are distinct because similar

services and equipment are sold separately.

 Tum’s satisfies those performance obligations when it

transfers the services and equipment to Food Fight.

Tum’s cannot recognize revenue for the royalty payments because it is not reasonably assured to be entitled to those royalty amounts.

 Tum’s recognizes revenue for the royalties when (or as) the

uncertainty is resolved.

LO 13

Identify the performance obligations and the point in time when the performance obligations are satisfied and revenue is recognized.

(124)

Consider the following for allocation of the transaction price at December 31, 2015.

LO 13

Training is completed in January 2016, the equipment is installed in January 2016, and Food Fight holds a grand opening on February 2, 2016.

(125)

On December 31, 2015, Tum’s signs the agreement and receives upfront payment and note.

Cash 20,000

Notes Receivable 30,000

Discount on Notes Receivable 6,043 Unearned Franchise Revenue 20,000

Unearned Service Revenue (training) 9,957 Unearned Sales Revenue (equipment) 14,000

LO 13

(126)

On February 2, 2016, franchise opens. Tum’s satisfies the

performance obligations related to the franchise rights, training, and equipment.

Unearned Franchise Revenue 20,000 Franchise Revenue 20,000

Unearned Service Revenue (training) 9,957 Service Revenue (training) 9,957

Unearned Sales Revenue (equipment) 14,000 Sales Revenue 14,000

Cost of Goods Sold 10,000 Inventory 10,000

LO 13