P

C
An entity shall apply this Std. to all contracts with customers, except the following:
a. lease contracts within the scope of PFRS 16
b. insurance contracts within the scope of PFRS 4
c. fin. inst. and other contractual rights or obli. w/in the scope of PFRS 9, PFRS 10, PFRS 11, PAS 27 and PAS 28
d. non-monetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers
An entity shall apply this Std. to a contract only if the counterparty to the contract is a customer
A customer is a party that has contracted with an entity to obtain goods or services that are an output of the entitys ordinary activities in
exchange for consideration
A counterparty to the contract would not be a customer if, for example, the counterparty has contracted with the entity to participate in an
activity or process in which the parties to the contract share in the risks and benefits that result from the activity or process rather than to
obtain the output of the entitys ordinary activities
A contract with a customer may be partially within the scope of this Std. and partially within the scope of other Std.
a. If the other Std. specify how to separate and/or initially measure one or more parts of the contract, then an entity shall first apply the
separation and/or measurement requirements in those Std.; an entity shall exclude from the transaction price the amount of the part(s) of the
contract that are initially measured in accordance with other Std.
b. If the other Std. do not specify how to separate and/or initially measure one or more parts of the contract, then the entity shall apply this Std. to
separate and/or initially measure the part(s) of the contract
This Std. specifies the acctg for the incremental costs of obtaining a contract with a customer and for the costs incurred to fulfil a contract with a
customer if those costs are not within the scope of another Std.; an entity shall apply those paragraphs only to the costs incurred that relate to a
contract with a customer (or part of that contract) that is within the scope of this Std.

C
An entity shall account for a contract with a customer that is within the scope of this Std. only when all of the following criteria are met:
a. the parties to the contract have approved the contract and are committed to perform their respective obli.
b. the entity can identify each partys rights regarding the goods or services to be transferred
c. the entity can identify the payment terms for the goods or services to be transferred
d. the contract has commercial substance
e. it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be
transferred to the customer.
In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customers ability and
intention to pay that amount of consideration when it is due; the amount of consideration to which the entity will be entitled may be less
than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession
A contract does not exist if each party to the contract has the unilateral enforceable right to terminate a wholly unperformed contract without
compensating the other party; a contract is wholly unperformed if both of the following criteria are met:
a. the entity has not yet transferred any promised goods or services to the customer
b. the entity has not yet received, and is not yet entitled to receive, any consideration in exchange for promised goods or services

V
If a contract with a customer meets the criteria at contract inception, an entity shall not reassess those criteria unless there is an indication of a
significant change in facts and circumstances
When a contract with a customer does not meet the criteria and an entity receives consideration from the customer, the entity shall recognize the
consideration received as revenue only when either of the following events has occurred:
a. the entity has no remaining obli. to transfer goods or services to the customer and all, or substantially all, of the consideration promised by the
customer has been received by the entity and is non-refundable
b. the contract has been terminated and the consideration received from the customer is non-refundable
An entity shall combine two or more contracts entered into at or near the same time with the same customer (or related parties of the customer)
and account for the contracts as a single contract if one or more of the following criteria are met:
a. the contracts are negotiated as a package with a single commercial objective
b. the amount of consideration to be paid in one contract depends on the price or perf. of the other contract
c. the goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single perf. obli.
A contract modification exists when the parties to a contract approve a modification that either creates new or changes existing enforceable rights
and obli. of the parties to the contract; if the parties to the contract have not approved a contract modification, an entity shall continue to apply
this Std. to the existing contract until the contract modification is approved
 An entity shall account for a contract modification as a separate contract if both of the ff. conditions are present:
a. the scope of the contract increases because of the addition of promised goods or services that are distinct
b. the price of the contract increases by an amount of consideration that reflects the entitys stand-alone selling prices of the additional promised
goods or services and any appropriate adjustments to that price to reflect the circumstances of the particular contract
At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a perf. obli. each
promise to transfer to the customer either:
a. a good or service (or a bundle of goods or services) that is distinct
b. a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer
criteria:
i. each distinct good or service in the series that the entity promises to transfer to the customer would meet the criteria to be a perf. obli.
satisfied over time
ii. a method would be used to measure the entitys progress towards complete satisfaction of the perf. obli. to transfer each distinct good
or service in the series to the customer
A good or service that is promised to a customer is distinct if both of the following criteria are met:
a. the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer
b. the entitys promise to transfer the good or service to the customer is separately identifiable from other promises in the contract
factors that indicate that two or more promises to transfer goods or services to a customer are not separately identifiable include, but are
not limited to, the following:
i. the entity provides a significant service of integrating the goods or services with other goods or services promised in the contract into a
bundle of goods or services that represent the combined output or outputs for which the customer has contracted
ii. one or more of the goods or services significantly modifies or customizes, or are significantly modified or customized by, one or more of
the other goods or services promised in the contract
The goods or services are highly interdependent or highly interrelated
An entity shall recognize revenue when (or as) the entity satisfies a perf. obli. by transferring a promised good or service to a customer
An entity transfers control of a good or service over time and, therefore, satisfies a perf. obli. and recognizes revenue over time, if one of the
following criteria is met:
a. the customer simultaneously receives and consumes the benefits provided by the entitys perf. as the entity performs
b. the entitys perf. creates or enhances an asset that the customer controls as the asset is created or enhanced
c. the entitys perf. does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for perf.
completed to date
If a perf. obli. is not satisfied over time, an entity satisfies the perf. obli. at a point in time; to determine the point in time at which a customer
obtains control and the entity satisfies a perf. obli., the entity shall consider indicators of the transfer of control, which include, but not limited to:
a. the entity has a present right to payment for the asset
b. the customer has legal title to the asset
c. the entity has transferred physical possession of the asset
d. the customer has the significant risks and rewards of ownership of the asset
e. the customer has accepted the asset
for each perf. obli. satisfied over time, an entity shall recognize revenue over time by measuring the progress towards complete satisfaction of
that perf. obli.
In determining the appropriate method for measuring progress, an entity shall consider the nature of the good or service that the entity promised
to transfer to the customer.
when applying a method for measuring progress, an entity shall exclude from the measure of progress any goods or services for which the
entity does not transfer control to a customer
an entity shall include any goods or services for which the entity does transfer control to a customer when satisfying that perf. obli.
An entity shall recognize revenue for a perf. obli. satisfied over time only if the entity can reasonably measure its progress towards complete
satisfaction of the perf. obli.
When a perf. obli. is satisfied, an entity shall recognize as revenue the amount of the transaction price that is allocated to that perf. obli.
An entity shall consider the terms of the contract and its customary business practices to determine the transaction price
the transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or
services to a customer, excluding amounts collected on behalf of third parties
the consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both
when determining the transaction price, an entity shall consider the effects of all of the following:
a. Variable consideration
an entity shall estimate the amount of consideration to which the entity will be entitled in exchange for transferring the promised goods
or services to a customer
the promised consideration is variable if either of the following circumstances exists:
i. the customer has a valid expectation arising from an entitys customary business practices, published policies or specific statements
that the entity will accept an amount of consideration that is less than the price stated in the contract
ii. other facts and circumstances indicate that the entitys intention, when entering into the contract with the customer, is to offer a
price concession to the customer
 - an entity shall estimate an amount of variable consideration by using either of the following methods, depending on which method the
entity expects to better predict the amount of consideration to which it will be entitled:
i. the expected value
ii. the most likely amount
b. Constraining estimates of variable consideration
an entity shall include in the transaction price some or all of an amount of variable consideration estimated only to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated
with the variable consideration is subsequently resolved
factors that could increase the likelihood or the magnitude of a revenue reversal include, but are not limited to, any of the following:
a. the amount of consideration is highly susceptible to factors outside the entitys influence
b. the uncertainty about the amount of cons. is not expected to be resolved for a long period of time
c. the entitys experience has limited predictive value
d. the entity has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar
contracts in similar circumstances
e. the contract has a large number and broad range of possible consideration amounts
c. The existence of a significant financing component in the contract
in determining the transaction price, an entity shall adjust the promised amount of consideration for the effects of the time value of
money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provides the customer or the entity
with a significant benefit of financing the transfer of goods or services to the customer
an entity shall consider all relevant facts and circumstances in assessing whether a contract contains a financing component and whether
that financing component is significant to the contract, including both of the following:
a. the difference, if any, between the amount of promised consideration and the cash selling price of the promised goods or services
b. the combined effect of both of the following:
i. the expected length of time between when the entity transfers the promised goods or services to the customer and when the
customer pays for those goods or services
ii. the prevailing interest rates in the relevant market
d. Non-cash consideration
to determine the transaction price for contracts in which a customer promises consideration in a form other than cash, an entity shall
measure the non-cash consideration (or promise of non-cash consideration) at FV
e. Consideration pay. to a customer
includes cash amounts that an entity pays, or expects to pay, to the customer
also includes credit or other items that can be applied against amounts owed to the entity
accordingly, if consideration pay. to a customer is accounted for as a reduction of the transaction price, an entity shall recognize the
reduction of revenue when (or as) the later of either of the ff. events occurs:
i. the entity recognizes revenue for the transfer of the related goods or services to the customer
ii. the entity pays or promises to pay the cons. (even if the payment is conditional on a future event)
The objective when allocating the transaction price is for an entity to allocate the transaction price to each perf. obli. in an amount that depicts the
amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer
To allocate the transaction price to each perf. obli. on a relative stand-alone selling price basis, an entity shall determine the stand-alone selling
price at contract inception of the distinct good or service underlying each perf. obli. in the contract and allocate the transaction price in proportion
to those stand-alone selling prices
the stand-alone selling price is the price at which an entity would sell a promised good or service separately to a customer
if a stand-alone selling price is not directly observable, an entity shall estimate the stand-alone selling price at an amount that would result in
the allocation of the transaction price meeting the allocation objective
suitable methods for estimating the stand-alone selling price of a good or service include, but are not limited to, the following:
a. Adjusted market assessment approachan entity could evaluate the market in which it sells goods or services and estimate the price that a
customer in that market would be willing to pay for those goods or services
b. Expected cost plus a margin approachan entity could forecast its expected costs of satisfying a perf. obli. and then add an appropriate
margin for that good or service
c. Residual approachan entity may estimate the stand-alone selling price by reference to the total transaction price less the sum of the
observable stand-alone selling prices of other goods or services promised in the contract
an entity may use a residual approach to estimate the stand-alone selling price of a good or service only if one of the ff. criteria is met:
i. the entity sells the same good or service to different customers (at or near the same time) for a broad range of amounts
ii. the entity has not yet established a price for that good or service and it has not previously been sold on a stand-alone basis
A customer receives a discount for purchasing a bundle of goods or services if the sum of the stand-alone selling prices of those promised goods or
services in the contract exceeds the promised consideration in a contract
an entity shall allocate a discount entirely to one or more, but not all, perf. obli. in the contract if all of the following criteria are met:
a. the entity regularly sells each distinct good or service in the contract on a stand-alone basis
b. the entity also regularly sells on a stand-alone basis a bundle(s) of some of those distinct goods or services at a discount to the stand-alone
selling prices of the goods or services in each bundle
c. the discount attributable to each bundle of goods or services is substantially the same as the discount in the contract and an analysis of the
goods or services in each bundle provides observable evidence of the perf. obli.(s) to which the entire discount in the contract belongs
 An entity shall allocate a variable amount (and subsequent changes to that amount) entirely to a perf. obli. or to a distinct good or service that
forms part of a single perf. obli. if both of the following criteria are met:
a. the terms of a variable payment relate specifically to the entitys efforts to satisfy the perf. obli. or transfer the distinct good or service
b. allocating the variable amount of consideration entirely to the perf. obli. or the distinct good or service is consistent with the allocation
objective when considering all of the perf. obli. and payment terms in the contract
An entity shall allocate to the perf. obli. in the contract any subsequent changes in the transaction price on the same basis as at contract inception;
an entity shall not reallocate the transaction price to reflect changes in stand-alone selling prices after contract inception
a change in the transaction price that occurs after a contract modification, an entity shall allocate the change in the transaction price in
whichever of the following ways is applicable:
a. An entity shall allocate the change in the transaction price to the perf. obli. identified in the contract before the modification if, and to the
extent that, the change in the transaction price is attributable to an amount of variable consideration promised before the modification and
the modification is accounted for
b. In all other cases in which the modification was not accounted for as a separate contract, an entity shall allocate the change in the
transaction price to the perf. obli. in the modified contract
An entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs
costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense
when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained
If the costs incurred in fulfilling a contract with a customer are not within the scope of another Std., an entity shall recognize an asset from the
costs incurred to fulfil a contract only if those costs meet all of the following criteria:
a. the costs relate directly to a contract or to an anticipated contract that the entity can specifically
costs that relate directly to a contract (or a specific anticipated contract) include any of the following:
i. direct labor
ii. direct materials
iii. allocations of costs that relate directly to the contract or to contract activities
iv. costs that are explicitly chargeable to the customer under the contract
v. other costs that are incurred only because an entity entered into the contract
b. the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) perf. obli. in the future
c. the costs are expected to be recovered
An asset shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services
an entity shall recognize an IL in P/L to the extent that the carrying amount of an asset exceeds:
a. the remaining amount of consideration that the entity expects to receive in exchange for the goods or services to which the asset relates
b. the costs that relate directly to providing those goods or services and that have not been recognized as expenses
an entity shall recognize in P/L a reversal of an IL previously recognized when the impairment conditions no longer exist or have improved
When either party to a contract has performed, an entity shall present the contract in the SFP as a contract asset or a contract liability, depending
on the relationship between the entitys perf. and the customers payment; an entity shall present any unconditional rights to consideration
separately as a receivable