> financial instruments and other contractual rights or obligations within the scope of IFRS 8 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint ‘Arrangements, 1S 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures; insurance contracts within the scope of IFRS 4/17 Insurance Contracts; and non-monetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers. (IFRS 15:5] ‘contract with a customer may be partially within the scope of IFRS 15 and partially within the scope ‘of another standard. In that scenario: [IFRS 15:7] If other standards specify how to separate and/or initially measure one or more parts of the contract, ‘then those separation and measurement requirements are applied firs. The transaction price is then reduced by the amounts that are intially measured under other standards; Ino other standard provides guidance on how to separate and/or of the contract, then IFRS 15 will be applied. itialy measure one or more parts Key definitions (IFRS 15: Appendix A) _____- An agreement between two or more parties that creates enforceable rights and obligations _____- Aparty that has contracted with an entity to obtain goods or services that are an output ofthe entity's ordinary activities in exchange for consideration. Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants. ____- Apromise in a contract with a customer to transfer to the customer either: a good or service (or a bundle of goods or services) thats distinct; or > aseries of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. - Income arising in the course of an entity's ordinary activities. - The amount of consideration to which an entity expects to be entitled in ‘exchange for transferring promised goods of services to a customer, excluding amounts collected on ‘behalf of third parties. ‘Accounting requirements for revenue ‘The five-step model framework ‘The core principle of IFRS 15 is that an entity wll recognise revenue to depict the transfer of promised {goods or services to customers in an amount that reflects the consideration to which the entity ‘expects to be entitled in exchange for those goods or services. This core principle is delivered in a five-step model framework: (IFRS 15:IN7] 1) Identity the contract(s) witha customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to the performance obligations in the contract 5) _ Recognise revenue when (or as) the entity satisfies @ performance obligation. Application ofthis guidance will depend on the facts and circumstances present in a contract with 2 customer and will require the exercise of judgment, ‘Step 1: Identify the contract with the customer ‘A contract witha customer willbe within the scope of IFRS 35 if al the following conditions are met: [HFRS 45:9) the contract has been approved by the parties tothe contract; > each partys rights in relation to the goods or services to be transferred can be identife > the payment terms forthe goods or services to be transferred can be identified;