Biotech signs an agreement with Pharma to share equally in the development of a specific drug candidate.
Is there a customer in the scope of IFRS 15?
It depends……….and this is the reasoning:
It is unlikely that the arrangement is in the scope of IFRS 15 if the entities will simply work together to develop the drug.
It is likely in the scope of IFRS 15 if the substance of the arrangement is that Biotech is selling its compound to Pharma and/or providing research and development services to Pharma, if those activities are part of Biotech’s ordinary activities.