Frs 15 Revenue From Contracts With Customers

Ifrs 15 specifies how and when an ifrs reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative relevant disclosures.

Frs 15 revenue from contracts with customers. Terms defined in appendix a are in italics the first time that they appear in the standard. Insurance contracts within the scope of ifrs 4 insurance contracts. It established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. How should an entity determine whether a promise is a distinct performance obligation and should be accounted for separately or whether it should be.

In may 2014 ifrs 15 international financial reporting standards revenue from contracts with customers was issued. Ifrs 15 revenue from contracts with customers provides a single principles based five step model that should be applied to determine how and when to recognise revenue from contracts with customers. Paragraphs in bold type state the main principles. Financial instruments and other contractual rights or obligations within the scope of ifrs 9 financial.

Scope ifrs 15 applies to all contracts with customers except the following. Customer a party that has contracted with an entity to obtain goods or services that are an output of the. The standard was published in may 2014 and is effective from 1 january 2018. Ifrs 15 revenue from contracts with customers your questions answered.

Ifrs 15 revenue from contracts with customers 2 defined terms ifrs 15 defines the following terms that form an integral part of this ifrs. Why do we need a new standard. The standard provides a single principles based five step model to be applied to all contracts with customers. Lease contracts within the scope of ias 17 leases.

All the paragraphs have equal authority. Frs 115 4 financial reporting standard 15 revenue from contracts with customers frs 115 is set out in paragraphs 1 129 and appendices a d. Contract an agreement between two or more parties that creates enforceable rights and obligations. Hkas 18 revenue hkas 11 construction contracts hk ifric int 13 customer loyalty programmes hk ifric int 15 agreements for the construction of real estate hk ifric int 18 transfers of assets from customers and hk sic int 31 revenue barter transactions involving advertising services.

Revenue from contracts with customers was introduced by the international accounting standards board to provide one comprehensive revenue recognition model for all contracts with customers to improve comparability within industries across industries and across capital markets.