IFRS 15 At a Glance .... (Revenue from Contracts with Customers)
Purpose: Establishes principles for reporting the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Effective Date: IFRS 15 is effective from January 1,2018. Early application is permitted. Scope: IFRS 15 Revenue from Contracts with Customers applies to all contracts with customers except for: leases within the scope of IAS 17 Leases; financial instruments and other contractual rights or obligations within the scope of IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures; insurance contracts within the scope of IFRS 4 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 [IFRS 15:5] Superseded Standards: IAS 11 and IAS 18 Source: http://www.iasplus.com/en/standards/ifrs/ifrs15
The Five- Step Model Framework
Step 4 Step 1
Step 2
Step 3
Identify the contract with the customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance obligations in the contracts
Step 5
Recognise revenue when (or as) the entity satisfies a performance obligation