01 Jan 2019 2 min read
As the market for these contracts evolves, the structure of and terms and conditions in these contracts continue to change, which can add complexity to the accounting.
This publication will focus on a PPA whereby the Buyer purchases power from a Seller that legally owns and installs an asset on the Buyer’s property for the life of the contract and produces energy for the use of the Buyer. The purpose of this publication is to outline the key decision points a Buyer must make in such a scenario in determining (1) whether the PPA is (or contains) a lease, and (2) the resulting measurement impact on its balance sheet and statement of operations. The specific terms of each PPA are critical in making these determinations, as well as a detailed understanding of the accounting requirements that is beyond the scope of this publication.
Learn how to determine the transaction price under Step 3 of IFRS 15's five-step revenue recognition model, including key considerations for customer contracts and financial reporting.
Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees, and other suppliers of goods and services.
Share-based payment transactions with non-employees involve compensating parties other than employees, such as suppliers of goods and services.
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