IFRS 15 Quick overview Revenue from contracts with customers

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IFRS 15 Quick overview Revenue from contracts with customers – the easy way to obtain an solid overview.

What is the objective of IFRS 15?

To establish principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

How does IFRS 15 meet this objective?

The core principle of IFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Practical expedient

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Changes in contracted transaction price under IFRS 15

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Changes in contracted transaction price under IFRS 15 can occur for various reasons. The standard requires entities to determine the Changes in contracted transaction price under IFRS 15 transaction price at contract inception. However, there could be changes to the transaction price after contract inception. For example, when a contract includes variable consideration, entities need to update their estimate of the transaction price at the end of each reporting period to reflect any changes in circumstances. Changes in the transaction price can also occur due to contract modifications. Changes in contracted transaction price under IFRS 15

Changes in the total transaction price

As stated in IFRS 15 88-89, changes in the total transaction price are generally allocated to the performance obligations on Read more