A company's revenue is generated via it's website through advertisements on a 'cost per click' basis. I.e every time a user clicks on an advertisement, they get paid by the advertising company. Under IFRS 15, the performance obligation is 'the user clicks the ad' - at which point the revenue should be recognised.
However, if the company invoice at the end of each month is there a small immaterial timing difference between the date the revenue is recognised and when the performance obligation was satisifed?
Thanks
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This invoice at the end of each month, what period does it cover up to?
E.g. is it invoice dated 30th June 2021 which covers all clicks up to say 12 noon on the 30th? (I assume with things like internet ad clicks it is possible to get pretty much real time information about numbers of clicks).
Or is it invoice dated 30th June 2021 which covers all clicks up to say 20th / 25th / 28th June? (i.e. there is some earlier cut-off point with any clicks after this going to the next month's invoice.)
... if the company invoice at the end of each month is there a small immaterial timing difference between the date the revenue is recognised and when the performance obligation was satisifed?
Yes.
What reporting might that affect?
It's only remotely significant if the timing difference crosses the end of a reporting period.