IFRS vs IAS

1. Revenue Recognition
DMS Revenue recognition in Zeta books

2. About IFRS 15
IAS 18 addresses when to recognize and how to measure revenue. IAS 18 applies to accounting for revenue
arising from the following transactions and events:
• the sale of goods;
• the rendering of services; and
• the use by others of entity assets yielding interest, royalties and dividends.
Revenue is recognized when it is probable that future economic benefits will flow to the entity and those
benefits can be measured reliably
IAS 18
• The new rules on revenue recognition became effective from 1 January 2018 and it replaces former revenue
recognition standards ( IAS 11 - Construction Contracts, IAS 18 - Revenues)
• The core principle of IFRS 15 is that revenue is recognized when the goods or services are transferred to the
customer, at the transaction price.

3. 5-step model
• Revenue is recognized in accordance with that core principle by
applying a 5-step model as shown below.

4. DMS Billing and Revenue Recognition - Controls
• DMS services are prepaid (mostly).
• Zeta charge their customers upfront and receive the funds immediately.
• Sales can be booked at the time of prepayment by customer.
• Revenue will be recognized as per the amount of services delivered Or the date of campaign expire (which
ever come/utilized first).
• DMS sales team will share customer sales ledger as per cutoff to the Zeta Finance.
• Sales team ensure to obtain necessary information of customers for compliance.
• Tax compliance to be predefined within our internal systems.
• Determination of fees and charges.
• Discounts to customers should be followed by predefined criteria.
• Recognition or non-recognition of accounts receivable on FRS
• pre-numbered work order forms are used, examine the department's records to insure the department
controlled the numerical sequence.
• goods/services provided match goods/services billed.