Resources On-Demand

Considering a 360 on revenue: How to properly account for revenue - 2021 (Session 2)

This webinar on demand is part of a series of webinars. Click here to read more

Overview

The new IFRS 15 contracts with customers standard has turned the financial reporting world on its head when it comes to recording revenue in the financial statements. This has resulted in us needing to sit back and recognise that accounting, taxation, and legislation may view the top line of the "income statement" very differently. So, what’s the difference between revenue, turnover, gross income, consideration and supply? Don’t get tripped up when trying to define these numbers! The aim of this session is to unpack the differences in treating revenue from an IFRS, income tax and VAT perspective. The first session will focus primarily on IFRS and the second session on tax.

Webinar content

This session will cover the following topics:

• Revenue recognition per IFRS 15 and IFRS for SME’s.
• Unpacking the relevant Income Tax Act definitions, focusing on the correct application of the gross income definition
• Understand the accounting and tax treatment of income received in advance
• Tax relief measures that are available when income is received in advance
• Unpacking the concept of a supply from a VAT perspective and how is this different to the income tax principles related to revenue
• Problem areas with revenue recognition and with the difference in treatment when comparing the accounting and tax treatment.

Outcomes

After attending this webinar, delegates will have gained an understanding of the competencies mentioned below and must be able to apply the concepts and techniques in all situations and environments:

• Understand IFRS 15 revenue from contracts with customers and comparing it to revenue recognition under IFRS for SME’s.
• Understanding the term “turnover”.
• Understand the concept of “gross income” from an income tax perspective.
• Understanding the concept of “supply” from a VAT perspective.
• Understand how income received in advance should be treated from an accounting and tax perspective.
• Engage in a comparative discussion with respect to the above.
   

Who should attend?

Any person who is looking to gain an understanding of the complexities of revenue from an accounting and tax perspective would benefit from this webinar. It would also benefit anyone who is responsible for the drafting of financials, completing tax returns, auditing entities, drafting sales agreements.