5.6: IFRS/ASPE Key Differences
- Page ID
- 100432
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| Revenue is recognized by applying the five-step process. The focus is on performance obligations and contract assets and liabilities. | Revenue is recognized using the earnings approach. The focus is on the transfer of risks and rewards of ownership. |
| The percentage-of-completion method should be used for long-term contracts, unless progress is not measurable, in which case the zero-margin method should be used. | Either the percentage-of-completion method or the completed-contract method can be used, depending on which more accurately relates the revenues to the work accomplished. The completed contract method should only be used if progress toward completion of the contract cannot be measured or if performance consists of a single act. |
| Barter transactions are measured at fair value. | Barter transactions are measured at fair value when the transaction has commercial substance. If there is no commercial substance, the asset acquired is measured at the carrying value of the asset given up, adjusted for any cash consideration. |
| Specific guidance provided on determination of the appropriate discount rate for payments received over time. | Payments received over time are discounted at the prevailing market rate. |
| Disclosure requirements are more specific and detailed. | Disclosure requirements are less detailed and indicate only that accounting policies and major categories should be disclosed. |