International Accounting Standard 18

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The International Accounting Standard 18 ( IAS 18 ) was an accounting standard of the International Accounting Standards Board (IASB), the accounting of revenues regulated. It was part of the International Accounting Standards and has been replaced by the new standard IFRS 15 , which is to be applied to all reporting periods on or after. Starting January 1, 2018.

In principle, according to IAS 18, revenue may be recorded in the accounting if the economic success expected from a transaction occurs with a certain probability and if the amount of the revenue can be reliably measured.

scope

IAS 18 covered the sale or exchange of goods and services and regulated the treatment of related interest , fees and dividends .

Lease agreements , dividends from affiliated companies, changes in fair value, proceeds from insurance contracts, proceeds from biological growth and the extraction of mineral ores were not addressed . Furthermore, also not production orders that were dealt with in the IAS 11 standard. This has also been replaced by the new IFRS 15.

content

Sale of goods

According to IAS 18, five criteria must be met in order to record a sale of goods:

  1. The risk has been transferred.
  2. The seller no longer has control over the goods.
  3. The proceeds can be measured reliably.
  4. The probability that the proceeds will flow to the company is greater than 50%.
  5. The cost of fulfilling the contract can be measured reliably.

Sale of services

For the sale of services, according to IAS 18, a distinction is first made as to whether the result can be reliably measured or not:

  1. If both costs and revenues can be measured reliably, the revenues are valued according to the “percentage of completion” method.
  2. If the result cannot be reliably measured, the expected revenues are only recognized up to the amount of the costs. In the event of an expected loss, this must be shown.

Interest, dividends, fees

An inflow of funds must be probable for interest, dividends or fees to be recognized in accordance with IAS 18. Interest must be recorded as a function of time. Dividends are recognized when the right to receive them arises. The recognition of revenue from fees, particularly license fees, is heavily dependent on the structure of the underlying contract.

history

In 1981 a first draft was published with E20 ( Exposure 20 ). The standard was published in 1982 as "IAS 18 Revenue Recognition" by the IASC . In November 1993 a revised version was published under the name "IAS 18 Revenue" and came into force for financial statements according to IAS from January 1, 1995. Due to uncertainties in the rules, an addendum ( SIC 27 ) was published in February 2000 that deals with special leasing procedures. In May 2001, SIC 31 facilitated barter transactions by advertising agencies. Both amendments came into effect on December 31, 2001. In order to remove further ambiguities and to create a separate standard for revenue recognition for US GAAP , the IASB and FASB started a joint project in 2002.

See also

literature

  • Wolfgang Ballwieser , u. a. (Ed.): Handbook IFRS 2011 . 7th edition. Wiley-VCH Verlag, Weinheim 2011, ISBN 978-3-527-50587-6 .
  • Rainer Buchholz: International accounting: The essential regulations according to IFRS and the new HGB - with tasks and solutions . 9th edition. Erich Schmidt Verlag, Berlin 2011, ISBN 978-3-503-13043-6 .
  • Bernhard Pellens, u. a .: International accounting: IFRS 1 to 8, IAS 1 to 41, IFRIC interpretations, draft standards. With examples, exercises and case study . 8th edition. Schäffer-Poeschel Verlag, Stuttgart 2011, ISBN 978-3-7910-2938-2 .

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