Paragraph 68 and 69 refer to the customer’s credit risk and the initial recognition of the receivables. According to paragraph 68, an entity shall account for receivable in accordance with IFRS 9 and for the effect of a customer’s credit risk on a contract asset. The credit risk is the risk that company will be unable to collect from the customer the considerations that were entitled in the contract. The difference between the measurement of receivable with IFRS 9 and corresponding amount of revenue recognized should be presented in profit or loss as a separate line item adjacent to the revenue line item. Furthermore, an entity shall present any impairment of the receivable in profit or loss as a separate line item adjacent to the revenue line item if it does not have any significant financing component. The main reason for this proposed requirement in the draft is that a company should recognize revenue that is expected to receive in consideration for the transfer of promised goods or services. This requirement takes into account the uncertainty about the collectability of the
Paragraph 68 and 69 refer to the customer’s credit risk and the initial recognition of the receivables. According to paragraph 68, an entity shall account for receivable in accordance with IFRS 9 and for the effect of a customer’s credit risk on a contract asset. The credit risk is the risk that company will be unable to collect from the customer the considerations that were entitled in the contract. The difference between the measurement of receivable with IFRS 9 and corresponding amount of revenue recognized should be presented in profit or loss as a separate line item adjacent to the revenue line item. Furthermore, an entity shall present any impairment of the receivable in profit or loss as a separate line item adjacent to the revenue line item if it does not have any significant financing component. The main reason for this proposed requirement in the draft is that a company should recognize revenue that is expected to receive in consideration for the transfer of promised goods or services. This requirement takes into account the uncertainty about the collectability of the