IFRS 15: REVENUE FROM CONTRACTS WITH CONSTUMERS

m
co
DEFINITIONS

o.
Contract Revenue Stand-alone selling price Performance Obligation

er
An agreement between two or more parties Income arising in the course of an entity’ s The price at which a good or service would be sold
A promise to transfer to the customer either:
ordinary activities. separately to a customer.

eH
that creates enforceable rights and obligations.

Customer Income Distinct (i) A distinct (bundle of) good(s) or service(s)

(ii) A series of substantially the same distinct goods or services that

rs
A party that has contracted with an entity to Increases in economic benefits in the form of The customer can ‘benefit’ from the good or service have the same pattern of transfer to the customer, and the pattern
obtain goods or services that are an output of inflows or enhancements of assets or decreases and also, the promise to transfer a good or service is separable of transfer is both over time and represents the progress towards

ou
the entity’ s ordinary activities in exchange for of liabilities that result in an increase in equity.
from other promises in the contract. complete satisfaction of the performance obligation.
consideration.

aC
THE FIVE STEP MODEL

vi
ed
STEP 2 STEP 3 STEP 4

ar
STEP 1 STEP 5
Identify the Determine the Allocation of the
Identifying Recognition of
a contract.
performance
obligation. sh transaction
price.
transaction
price.
revenue
as
e w

PRESENTATION DISCLOSURE
rc

Statement of financial position Overall obj ective to disclose sufficient information to enable users to understand the nature, amount, timing, and
ou

uncertainty of revenue and cash flows arising from an entity’ s contracts with customers.
- Contract assets and contract liabilities from customers are presented separately
A Contracts with customers (information regarding): Significant judgement:
- Unconditional rights to consideration are presented separately as a receivable
s

- Disaggregation of revenue - Performance obligation satisfaction

re

- Contract assets and contract liabilities - Transaction price (incl. allocation)

Statement of profit or loss and other comprehensive income
- Performance obligations (incl. remaining). - Determining contract costs capitalized.
- Line items (revenue and impairment) are presented separately in accordance
y

Use of practical expedients (related to): Contract costs capitalized:

with the requirements of IAS 1 Presentation of Financial Statements.
https://www.coursehero.com/file/49474978/IFRS-15-Concept-Mappdf/ - Significant financing component (12 month) - Method of amortization -Amortization and impairment
ud

- Contract costs (12 month amortisation). - Closing balances by asset type

Powered by TCPDF (www.tcpdf.org)