5 Franchise Accounting - PPTM
5 Franchise Accounting - PPTM
5 Franchise Accounting - PPTM
MODULE GOALS/LEARNING
OBJECTIVES:
• Journalize franchising transactions
• Determine earned and unearned franchise
revenue under PAS 18
• Apply PFRS 15 in accounting for franchise
revenue
What is Franchise?
It is an arrangement where one party
(the franchisor) grants another party
(the franchisee) the right to use its
trademark or trade-name as well as
certain business system and processes,
to produce and market a good or service
according to certain specifications.
PFRS 15 vs PAS
18
PFRS 15 (Five-Step Model)