Contract Modifications under IFRS 15 – Just two practical examples, to better understand all kind of things for IFRS 15.
On 1 January 20X1, Wireless Company enters into a two-year contract with a customer for a 2-gigabyte (GB) data plan with unlimited talk and text for CU60/month and a subsidised handset for which the customer pays CU200. Contract Modifications under IFRS 15
The handset has a stand-alone selling price of CU600. Contract Modifications under IFRS 15
For purposes of this illustration, the time value of money has not been considered, the stand-alone selling price of the wireless plan is assumed to be the same as the contractual price and the effect of the constraint on variable consideration is not considered. … Read more