Company X sells software products to clients. A client approaches for a specialized software which X outsources to a sub-contractor. The software's cost would be say $2,500.
As at the year end, sub-contractor has not completed the product yet and they have been paid an advance amount of $1,000.
Could someone let me know
1). Which IFRS standard applies for this transaction.
2). Entries to be passed current year (Software not completed/delivered yet).
3). Entries to be passed after product is delivered.
Thank you.
CAclubindia
