20: Revenue from contract with customer (IFRS15):

IFRS 15 issued in 2014 replaced IAS18,11, effective of annual beginning on or after

2018.

2018 ‫بدأ تطبيق عام‬،18‫و‬11 ‫ تم استبداله بمعيار‬2014 ‫اصدر عام‬.

Why IFRS15 issued? To create a comprehensive standers which provide a single

revenue recogntion model that can be applied consistently across various
industries, geographical regions and transaction.

‫من اجل وضع معايير شاملة تزودنا بنموذج اعتراف بااليرادات يمكن تطبيقه باتساق في القطاعات المختلفة‬
‫ومناطق مختلفة واحداث مختلفة‬.

What is the Objective of IFRS15: the objective is to establish principle that the
entity must be flows to report useful information to users of financial statements
about the nature, amount, timing and uncertainty of rev and cash flow arising
from a contract with customer.

‫لوضع مبادئ يجب على الشركة اتباعاها من اجل التقريرعن المعلومات المفيدة لمستخدمي القوائم المالية‬
‫عن طبيعة وقيمة ووقت وحاالت عدم التأكد الخاصة بااليرادات وتدفقعات النقدية الناتجة عن العقود مع‬
‫العمالء‬.

What should company’s do To meet the objective of IFRS15: the core principle of
IFRS15 is that an entity should recognized rev to depict the transfers of promised
goods or services to customer in the amount that reflects, the consideration to
which the entity expects to be entitled in exchange for those goods or services.

‫ هو ان على الشركة االعتراف بااليرادات لتصف عملية نقل‬IFRS15 ‫إن المبدأ االساسي للمعييار رقم‬
‫البضاعة او الخدمات للعميل بالقيم التي تعكس المقبال التي ستحصل علية المشأة مقبال هذه العملية‬

The transfer of goods and services is based on concept of control derived from
.the definition of an assets in the conceptual framework

‫هون بحكي انه عملية نقل البضاعة والخدمات على اساس ال السيطرة الشركة على االصل والي حكينا في‬
.)2(‫بشابتر‬
The contract determines the agreement between to parties and the revenue
.recognition is derived from the enforceable rights and obligations agreed upon

‫يحدد العقد التوافق بين جهتين و وينشأ االعتراف بااليرداد من نشوء حقوق والتزامات نتاجة عن هذا‬
.‫التوافق‬

:Definition of terms

Contract: an agreement between two or more parties that creates enforceable

.rights (contract assets) and obligations (contract liabilities)

.‫هو اتفاق بين شخصين او اكثر يؤدي الى نشوء حقوق وااللتزامات‬

Contract assets: An entity’s right to consideration in exchange for goods or right is

.conditioned on something other than the passage of time

‫حق الشركة(تعويض) عن عملية تبادل البضاعة او حق مشروط بشغلة ولكنها غيرمرور الزمن‬

Example: the entity’s future performance.

Contract liabilities: an entity’s obligation to transfer goods or services to

customer for which the entity has received consideration from the customer.

‫التزام على الشركة لتوريد البضاعة او تقديم خدمة للعميل الذي دفع للشركة تعويض عن هذة البضاعة او‬
‫خدمة‬.

Customer : a party that has contracted with an entity to obtain good or services
that are an output of the entity’s ordinary activities in exchange for consideration.

‫العميل الي بعمل عقد مع الشركة مشان توردلة بضاعة وبتكون هاي البضاعة ناتجة عن النشاط التشغيلي‬
‫ للشركة‬.

Income: increasing in economic benefits during the accounting period in the

form of inflow or enhancements of assets or decreases of laib that result in an
increase in equity, other than those relating to contributions from equity
participants.

‫زيادة بالمنافع االقتصادية الناجمة عن تدفق او تعزيز االصول او نقصان االلتزمات والتي توؤدي الى زيادة‬
‫ ولكن مساهمات المستثمرين في رأس المال ال تدخل ضمن هذا التعريف‬،‫رأس المال‬.
 Equity participants: owner((‫يستمثر المال مقابل حصة باالسهم‬, creditor‫)يستثمر بالسندات‬
‫بس بتعريف الدخل هون ما بنوخذهن بعين االعتبار بالمعايير )للحصول على فائدة والمبلغ االصلي‬.

Income consists of : rev(result from operational activities)and gain(result

from nonoperational activities such as (gain(loss)from disposal assets)

Performance obligation: A promise in a contract with customer to

transfer to the customer either:

‫وعد في العقد (بين الشركة والعميل) من اجل تقديم للعميل واحد مما يلي‬:

A good or service(or bundle‫ مجموعة‬of good or services) that is distinct: or

‫سلعه او خدمة او مجموعة من السلع والخدمات المستقلة‬
A series of distinct good or services that substantially the same and that have
the same pattern of transfer to the customer.
‫سلسلة من السلع والخدمات المستقلة التي تتطابق ويكون نقلها للعميل بنفس الطريقة‬

one ‫مثال عندي كمبيوتر وعندي وندوز وعندي صيانة ممكن اعتبر الكمبوتر والوندوز‬
one performance obligation ‫و اعتبر الصيانة‬performance obligation

Revenue: income raising from entity ordinary activities.

Income is revenue and rev is income

Gain is income but income is could not gain

Stand-alone-price of good and service: the price at which an entity would sell a
promised good or services separately to a customer.(price of one performance
obligation)

‫ بكجات لما اجي اوزع مثال اول بكجين مع بعض ببكج والثالث لحال وكان سعر الكلي‬3 ‫ممكن يكون عندي‬
‫ والبكج الثالث الي‬1000 ‫دينار لما اجي اوزع مثال البكجين الي مع بعض ببكج بنحطلهم سعر‬3000
SAP ‫ هنة‬2000‫و‬1000‫ هون ال‬2000 ‫لحالة مثال سعرة‬
Transaction price for contract with customer: the amount of consideration to
which an entity expects to be entitled in exchange for transferring promised good
or services to customer, excluding amount collected on behalf of third parties.

‫يتم استثاء‬،‫المبلغ المتعلق بالمقابل التي تتوقع الشركة انها ستحصل علية مقابل نقل البضاعة او الخدمات‬
)‫المبالغ عن طريق طرف ثالث (مثل اذا علية ضريبة شيلها‬.

Scope:

IFRS 15 APPLIES only if the counterpart of the contract is customer.

IFRS15 applies to income deriving from ordinary activities (rev).

IFRS15 applies to all contract with customer except leases, insurance

contract, financial instrument, guarantees and certain non-monetary
exchange.
 A contract of customer may be partially within the scope of ifrs15 and within
the scope of another IFRS, If other IFRS stander specify how to separate
and/or initially measure components of the contract, then that IFRS
Stander is applied first.
‫ ومعييار اخر وحدد معيار االخر طريقة الفصل‬15 ‫اذا كان في عندي حالتين وبنطبق عليهن معييار‬
15 ‫او القياس مكونات العقد يتم تطبيق المعيار االخر اوال ثم نرجع لمعيار‬
The transaction price for the purpose of IFRS 15 is then reduced by the
amounts measured under the other IFRS standards ,however if the other
IFRS standards does not provide such guidance ,then IFRS15 will be applied
to the whole contract.

15 ‫بنسعر االشياء الي وفقا للمعيار االخر واذا ضل اشياء مش مذكورة بمعايير اخر بنسعر وفقا لمعيار‬
15 ‫واذا االسعار اصال مش مذكورة بمعيار اخر بنطبق معيار‬

For instance counterparties partners that share risk or activities together

would not be regarded as customer for the purpose of IFRS15.

customers ‫ ال يتم اعتبار الشركاءاو احد شركاء الشركاء‬15 ‫وفقا للمعيار‬

  Only standards deal with incremental cost‫( ) تكلفة الحصول على عقد‬of obtaining
a contract and cost incurred (‫)تكلفة المتكبدة من اجل اتمام‬to fulfill a contract
is(IFRS 15).

Rev to be recognition, five step should be applied at contract inception((

‫ نشأةاوتاريخ‬not need to applied in sequence(:(‫مش ضروري الترتيب‬
1- Identify the contract with customers
2- Identify the performance obligation in the contract
3- Determine the transaction price
4- Allocate the transaction price
5- Recognize rev when performance obligation is satisfied

The revenue model is applied to each individual contract, however a portfolio

approach is permitted for contracts with similar characteristics provided it
is reasonable expected that the impact on the financial statements will not
be materially different from applying this model to the individual contracts.

Step1: identifying the contract with customers:

IFRS 15 applies only for valid contracts that meet specific criteria
‫عقود صالحة مبنية على معايير محدده‬

Identifying the contract:

- IFRS 15 clarifies that contract can be oral, written or implied by the

business practices. ‫صنف العقود الى شفهي او مكتوب اومشار له بالممارسات التجارية‬
 - A contract with a customer will be regarded as valid contract in the scope
of IFRS 15 when all the following criteria are met:000
1- The parties to the contract have approved the contract
‫ان يكون جميع االطراف موافين‬
2- Each part’s right in relation to the goods or services to be transferred
can be identified;
‫جميع الحقوق المتعلقة بتوريد البضاعة يمكن تحديدها‬
3- The payment terms and conditions for the good or services to be
transferred can be identified;
‫يمكن تحديد شروط الدفع المتعلقة بعملية التوريد‬
4- The contract has commercial substance;
‫ان يكون العقد ذو جوهر تجاري‬
5- The collection of amount of consideration to which the entity is
entitled in exchange good and services is probable.

This criteria are assessed at contract inception and should not be re-assessed
unless an indication of a significant change in facts or circumstances is
evident.
If a contract does not meet the above criteria, rev is not recognized
The collectability criterion will normally not create problems in practice if an
entity has proper credit control procedures to assess the credit status of
customers.
‫ال تسبب معايير النحصيل بالشكل الطبيعي مشاكل في الممارسه اذا كانت تمتلك الية لتقيمم القدرة‬
‫االئتمانيى للعميل‬
However, in the case of, for instance, state-owned entities that apply IFRS,
this criterion could be problematic if the state-owned entities are required
to provide services by law even if it is probable that the customers will not
be able to settle their accounts.
‫لكنها في بعض الحاالت تسبب مشكال مثل الشركات التي تكون مليكتها للحكومه ممكن القانون‬
‫يجبر الشركات على تقديم خدمات حتى ولو لم يكن العميل قادر على الدفع‬
IFRS 15 states that the enforceability(‫ )انفاذ‬of the rights and obligations in a
contract is a matter of law, which could be applied and interpreted
differently across legal jurisdictions.
Business practice and procedures could also differ within an entity. These
business practice and procedures should also be considered to determine
whether and when an agreement with a customer creates enforceable
rights and obligations.
Specifically, a contract does not exist if all parties to the contract have a
unilateral enforceable right to terminate the contract without
compensating other parties.
‫ال يوجد عقد اذا كان الحد االطراف الحق في فسخ العقد دون تعويض الشخص االخر‬

- No transaction is recognized for a wholly underperformed contract. A

contract is regarded to be wholly underperformed and regarded as an
executory contract if both the following are present:

1. Promised goods or services are not transferred to the customer.

2. No consideration is received or receivable in exchange for the promised
goods or services.

- When a contract with a customer does not meet the criteria to identify a
valid contract and consideration is received from the customer, revenue
shall only be recognised for the consideration received when either of
the following events happens:
1. No remaining obligations to transfer goods or services to the
customer exist and substantially all of the consideration promised by
the customer has been received and is non-refundable; or
‫ال يوجد االلتزام على الشركة بتقديم خدمات وان جميع المبالغ المستلمة من العميل غير‬
‫قابلة لترجيع‬

2. The contract has been terminated and the consideration received

from the customer is non-refundable.
‫تم فسخ العقد والمبالغ المستلمه غير قابلة لترجيع‬
The consideration recived for invalid contacts shall be recognized as liab until
of the events above happen or the contact become valid.
 Liab recognized to either transfer goods in the future or to refund the
consideration received.

combination of contract:

 contracts are normally assessed separately.‫يتم تقييمة بشكل منفرد‬

contracts are ,however ,combined and treated as a single contract for the
purpose of IFRS15 if they are entered into at or near the same time with
the same customer(or related parties of customer) if any of the following
cases:
‫يتم دمج العقود ك عقد واحد اذا تم توقيع العقد في نفس الوقت او بوقت قريب منه مع نفس العميل‬
‫او اطراف ذات صله فية اذا تحقق واحد مما يلي‬:
1- The contracts are negotiated as package with a single commercial
objective.
‫يتم التفاوض على العقود كحزمة لهدف تجاري واحد‬
2- the amount of consideration to be paid in one contract depend on the
price or performance of other contract.
‫يعتمد قيمة التعويض المالي الذي يدفع في عقد واحد على سعر او تنفيذ عقد اخر‬
3- The goods or services promised in the contracts (or some goods or
services promised in each of the contracts) are a single performance
obligation.
‫تكون السلع والخدمات التي تم اعطاء وعد فيها في العقد (او بعض هذة السلع والخدمات في‬
)‫كل من العقود االتزام اداء واحد‬
Contract modification:
Change in the scope or price(or both) in the contract that is approved by the
parties of contract.
Contract modification therefore either creates new or change the existing
enforceable rights and obligation in the contract.
Approved by the parties either in writing, by oral agreement or implied by
customary business practices.
 Variable consideration: is an uncertainty in the price of an existing contract
that will only be resolved when future uncertainty is clarified.
 We need judgment to distinguish between modifications and variable
consideration.
When a modification is not approved by the parties to the contract, IFRS 15 is
applied to the existing contract until the contract modification is approved.
‫ على العقد الحالي الى حين الموافقة على‬15 ‫اذا ال يوجد موافقة على التعديل يتم تطبيق معييار‬
‫التعديل‬
 All fact and circumstances, including the terms of the contract and other
available evidence, should be considered to determine whether a valid
contract modification exists and enforceable.

 A contract modification may, however, exist although a dispute ‫))نزاع‬arises

about the scope or price of the modification or the parties have approved a
change in the scope of the contract but has not yet determined the
corresponding(‫ )التغير المقابل‬change in price.

To determine the accounting treatment of contract modifications, an

assessment is made to determine whether the modification is a separate
contract or a change in an existing contract.

A contract modification is accounted for as a separate contract when both

the following conditions are met:000
‫يجب على المنشأة عمل عقد منفصل اذا تحقق الشرطين التاليين‬
1- An addition of promised goods or services exists that is distints and the
increase the scope of contract.
‫وجود سلع وخدمات جديده ادت لزيادة نطاق العقد‬
2- The price increase of additional goods or sevices reflect the stand-aloan
selling prices of additional good or services.

‫زياده اسعار السلع الجديده الذي يعكس السعر السلع المستقلة‬

- If the above are not meet, the contract modification is treated as change
of the existing contract. ‫بنعدل على العقد الحالي‬
 - Changes of existing contracts are accounted for either prospectively
- or retrospectively. ‫التعديل بأثر مستقبلي او رجعي‬

- The accounting treatment depends on whether the remaining goods or

services to be delivered after the modification are distinct from those
delivered before the modification. This assessment will result in the
contract being treated in one of the following three ways:

1-The contract modification is treated as a termination of the existing

contract and the creation of a new contract, if the remaining goods or
services are distinct from the goods or services transferred on or before
the date of the contract modifcation.

The amount of consideration to be allocated to remaining performance

obligation is then the sum of:

1- The portion of the transaction price of the contract before modification

not yet recognized as rev.
2- The additional consideration promised as part of the contract
modification.

2-The contract modification is treated as part of the existing contract if

the remaining goods or services are not distinct.

3-When the remaining goods or services are a combination of creating a

new contract and adjusting an existing contract, the effects of the
modification on the unsatisfied performance obligations are separated
by following the principles of both options 1 and 2 above.