IFRS 15 Revenue from customer contracts

Consignment arrangements An entity may deliver goods to another party but retain control of the goods – e.g. it may deliver a product to a dealer or distributor for sale to an end customer. These types of arrangements are called ‘consignment arrangements’, and do not allow the entity to recognize revenue on delivery of the … Read more

Topics hide Repurchase agreements in IFRS 15 A forward or a call option An approach that focuses on the repurchase price Requirements for repurchase agreements not applicable to arrangements with a guaranteed resale amount Conditional forwards or call options Right of first refusal Repurchase agreements in IFRS 15 INTRO Repurchase agreements in IFRS 15 – … Read more

Allocate the transaction price to POs – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Allocate the transaction price to POs Once the performance obligations are identified and the transaction price has been determined, IFRS … Read more

Performance obligations software contracts and cloud services contracts – Once an entity has identified the contract with a customer, it evaluates the contractual terms and its customary business practices to identify all the promised goods or services within the contract and determine which of those promised goods or services (or bundles of promised goods or … Read more

IFRS 15 Sales with buyback options (ie IFRS 15 Sales with buyback options) – Original Equipment Manufacturers (OEMs) may have a right or obligation to repurchase vehicles as part of a contract with a customer or may provide residual value guarantees to certain customers. Examples include repurchase options on sales of fleet vehicles or residual … Read more

Satisfaction of construction performance obligations considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced … Read more

Topics hide IFRS 15 Vehicle sales by OEMs Another example – same subject And yes one more on the run – Repurchase agreement OEM IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs (Original Equipment Manufacturers) shows examples of real life situations, in this case close … Read more

Contract modifications and variable consideration are sometimes not easy to distinguish from one another. So here is a discussion bringing them together. IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is … Read more