IFRS 15 Revenue from Contracts with Customers

IFRS 15 establishes a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor excepts to be entitled in exchange for thos goods and services.

STEP 1 Identify the Contract
STEP 2 Identify performance obligations

Distinct goods or services

STEP 3 Determine the transaction price
STEP 4 Allocating the Transaction Price to Performance Obligations
STEP 5 Recognise revenue when each performance obligation is satisfied