1 / 9

Unexpected woe of the E-commerce Industry

The objective of IFRS 15 is to found an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. Transaction price calculate in IFRS 15 by (variable consideration, The existence of a significant financing component in the contract, Non-cash consideration, Consideration payable to a customer) If you want to learn ifrs online certification course in detail then contetra pvt ltd is best place to enrol for ifrs certification course online please go through b

contetrauniversal
Download Presentation

Unexpected woe of the E-commerce Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unexpected woe of the E-commerce Industry

  2. Content

  3. What do you think is the biggest cause of misery for the E-commerce industry? • It isn’t Data Security, it isn’t Customer Loyalty, nor is it Competition. It is actually the Logistics surrounding cost of Sales Returns! • You will be shocked to know that the rate of Sales return in the E-commerce industry falls in the bracket of 30-35%! Yes, you read those numbers right. This implies that out of 100 products bought on Amazon or Flipkart each day, around 35 are returned by the customers! Talk about impulsive shopping! I bet this is also making you think twice before placing that return order!

  4. Have you wondered how big players like Amazon and Flipkart account for these sales returns?

  5. Revenue for the transferred products • Recognized at the net amount of revenue (consideration) the entity expects to receive after the product returns have been considered into the sale.

  6. A Refund Liability:

  7. An asset (and corresponding adjustment to cost of sales) • The entity might have a right to recover products from customers who demand a refund – this is effectively a reduction in the cost of goods sold. Thus, it shall be recognised as entity’s right to recover products on settling a refund liability. • At the end of each reporting period, the estimation of future returns shall be updated & the measurement of recovery asset and refund liability shall also be revised – this might result in revision of revenue recognised. • Therefore, upon transfer of control of the 10,000 masks, E-Mart will not recognize the revenue for the 3000 products that it expects to be returned.

  8. Conclusion • The objective of IFRS 15 is to found an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. Transaction price calculate in IFRS 15 by (variable consideration, The existence of a significant financing component in the contract, Non-cash consideration, Consideration payable to a customer) If you want to learn ifrs online certification coursein detail then contetrapvt ltd is best place to enrol forifrs certification course online please go through below link : https://contetra.com/diploma-in-ifrs-training/

  9. Contact

More Related