Understanding IFRS 15

Let’s say Wholesaler PLC has signed a contract to supply goods to Retailer Plc for $20 mn for the period of one year on 1st October 2019. However Retailer Plc has asked Wholesaler Plc to pay $1m for the purpose of creating more shelf space in their stores. How will Wholesaler Plc recognise revenue for […]

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Understanding Contribution

Contribution represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. Equation 1 C = S – VC Where C = Contribution S = Sales Revenue VC = Variable Costs Equation 2 P = S – VC – FC Where P = Profit […]

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