Yakub02
Banned
Contract costs Costs might be incurred in obtaining a contract and in fulfilling that contract.
The incremental costs of obtaining a contract with a customer are recognised as an asset if the entity expects to recover those costs.
The incremental costs of obtaining a contract are those costs that would not have been incurred if the contract had not been obtained.
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are expensed as incurred (unless they can be recovered from the customer regardless of whether the contract is obtained).
An entity may recognise the incremental costs of obtaining a contract as an expense when incurred if the amortisation period of the asset that the entity otherwise would have recognised is one year or less.
Costs to fulfil acontract Costs incurred in fulfilling a contract might be within the scope of another standard (for example,
IAS 2: Inventories, IAS 16: Property, Plant and Equipment or IAS 38: Intangible Assets).
If this is not the case, the costs are recognised as an asset only if they meet all of the following criteria:
the costs relate directly to a contract or to an anticipated contract that the entity can specifically identify;
the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and the costs are expected to be recovered.
The incremental costs of obtaining a contract with a customer are recognised as an asset if the entity expects to recover those costs.
The incremental costs of obtaining a contract are those costs that would not have been incurred if the contract had not been obtained.
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are expensed as incurred (unless they can be recovered from the customer regardless of whether the contract is obtained).
An entity may recognise the incremental costs of obtaining a contract as an expense when incurred if the amortisation period of the asset that the entity otherwise would have recognised is one year or less.
Costs to fulfil acontract Costs incurred in fulfilling a contract might be within the scope of another standard (for example,
IAS 2: Inventories, IAS 16: Property, Plant and Equipment or IAS 38: Intangible Assets).
If this is not the case, the costs are recognised as an asset only if they meet all of the following criteria:
the costs relate directly to a contract or to an anticipated contract that the entity can specifically identify;
the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and the costs are expected to be recovered.
