DISCLAIMER: This enabler provides a series of questions for users to consider in adopting IFRS 15 Revenue from Contracts with

Customers. It
has been designed to comply with the auditor independence rules and, therefore, does not provide functionality with respect to calculating or
generating information for financial reporting purposes. Accordingly, the enabler does not constitute the design or development of processes,
procedures, business requirements, systems or internal controls. The enabler should not be used to support the functioning of internal control
over financial reporting. EY makes no representations, and provides no assurance, with respect to the use of this enabler or its output for your
purposes or any other purpose. All decisions reached and documented in connection with the enabler are those of the user, and not EY.
Contract analysis enabler

Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
General contract information Customer name
Legal entity (seller)
Contract identification #
Local currency
Contract inception date
Revenue stream
Contract analysis prepared by
Division
Contract analysis reviewed by
Date contract analysis reviewed
Record identification #
Date contract analysis updated
Brief description
Background and summary of current accounting
Documents reviewed
1.1 Scope Is the arrangement with a customer and within the scope of the Note that lease contracts, insurance contracts, financial instruments and non- Applying IFRS IFRS 15.1-7 BC28-BC30, BC52-BC66, BC69-BC70
standard? monetary exchanges between entities in the same line of business to facilitate Chapter 2 (all)
sales to customers are out of scope.
Additional sections
Consider whether the counterparty is a customer. Use of the portfolio approach: Section 3.3.1

Consider whether a portion of the contract is within the scope of other standards.

1.1.1 Repurchase provisions: Does the arrangement contain any repurchase provisions? If the answer to both questions is yes, the repurchase provision is out-of-scope – Applying IFRS IFRS 15.34, B64 – B76, IE314 – IE321 BC422 – BC433
scope look to other relevant requirements. Section 7.3
Do any of the repurchase provisions cause the arrangement to
be out-of-scope?

1.2 Definition of a contract Does the arrangement represent a contract with a customer that If the answer is no, the arrangement does not meet the definition of a contract – Applying IFRS IFRS 15.9–16, IE2-IE17 BC1A, BC27A-BC27H, BC31-BC51, BC67-
meets the following criteria? apply the requirements in IFRS 15.14-16. Section 3 (chapter introduction), Section 3.1, Section 3.2 and BC68, BC259-BC265
Section 3.5
- The parties to the contract have approved the contract and are
committed to perform their respective obligations Additional sections
- The entity can identify each party's rights regarding the goods Reassessing the contract criteria upon a modification: Question
or services to be transferred 3-8 (in section 3.4)
- The entity can identify the payment terms for the goods or
services to be transferred Accounting for activities before meeting the contract criteria:
- The contract has commercial substance Question 7-10 (in section 7.1.4)
- 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

1.3 Combining contracts Was the contract entered into at or near the same time as other If the answer is yes, proceed to Step 1.3.1. Applying IFRS IFRS 15.17 BC71-BC75
contracts with the same customer or its related parties? Section 3.3
If the answer is no, proceed to Step 1.4.
1.3.1 Contract combination Do the contracts meet one or more of the following criteria? If the answer is yes, combine the contracts and consider them together Applying IFRS IFRS 15.17 BC71-BC75
criteria throughout the rest of the 5-step analysis. Section 3.3
-The contracts are negotiated as a package with a single
commercial objective If the answer is no, evaluate each contract separately.
-The amount of consideration to be paid in one contract
depends on the price or performance of the other contract
-The goods and services promised in the contracts (or some
goods or services promised in each of the contracts) are a
single performance obligation (refer to Step 2 of this tool for
requirements for identifying separate performance obligations)

1.4 Contract modifications Has the contract been modified since it was entered into or If the answer is yes, proceed to Step 1.4.1. Applying IFRS IFRS 15.18-19, 90, C5(c), C7A, IE18-IE43 BC1A, BC27A-BC27H, BC76, BC81-BC83,
commenced? Section 3.4 (chapter introduction) BC445A, BC445O-BC445R
If the answer is no, proceed to Step 2.1.
A contract modification is a change in the scope or price (or Additional sections
both) of a contract that is approved by the parties to the Partial terminations treated as modifications: Question 3-6 (in
contract. Updates in estimates of variable consideration and section 3.2)
changes that do not affect scope or price are not considered
modifications. For estimates of variable consideration, refer to Accounting for the exercise of a material right: Question 4-14 (in
Step 3.2; for changes in those estimates, refer to Step 3.6. section 4.6)

Modifications and renewals of licences: Question 8-1 (in section

8.1.4) and Section 8.4

1.4.1 Separate revenue Did the modification increase the scope of the contract due to If the answer is yes, the modification results in a new contract that needs to be Applying IFRS IFRS 15.20, 90, IE19-IE21 BC77, BC414S–BC414U
arrangements the addition of promised goods or services that are distinct and separately analysed starting with Step 1. The original contract needs to still be Section 3.4.1
are priced at an amount that reflects the stand-alone selling analysed according to the original terms. proceed to Step 2.1.
price for the additional goods or services?
If the answer is no, proceed to Step 1.4.2.
For discussion of distinct goods or services, refer to Step 2.1;
for discussion of stand-alone selling price, refer to Step 4.2.

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Contract analysis enabler
Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
1.4.2 Treatment of modified Are the remaining goods or services in the modified contract Refer to Step 2.1 for the requirements for identifying distinct goods or services. Applying IFRS IFRS 15.21, 90, IE19, IE22-IE43 BC78-BC83
contract Section 3.4.2
(i) Distinct from the goods or services transferred on or before If the answers to both questions are yes, the remaining consideration is allocated
the date of the contract modification and not priced at stand- to the remaining performance obligations and the measures of progress for
alone selling price? partially unsatisfied performance obligations are updated with revenue
(ii) Part of a single performance obligation that is partially recognised on a cumulative catch-up basis.
satisfied at the date of the contract modification?
If the answer to the first question is yes and the answer to the second question is
Contracts modifications may meet both of these factors when no, the contract modification is accounted for as if it were a termination of the
there are multiple performance obligations. existing contract and the creation of a new contract. The remaining goods or
services and remaining consideration not yet recognised as revenue are
Consider the factors above separately for each performance analysed as a new contract.
obligation in the modified contract. For example, if one
performance obligation is distinct and the remaining promises If the answer to the first question is no and the answer to the second question is
are part of a single performance obligation that is partially yes, the contract modification is accounted for as if it were part of the existing
satisfied at the date of the modification, answer yes to both contract. The transaction prices and measures of progress are updated with
questions. revenue recognised on a cumulative catch-up basis.

Refer to Step 2.1 for the requirements for identifying distinct There should not be any situations where the answers to both questions are no.
goods or services.

2.1 Performance obligations What are the performance obligations in the contract? See the 'Goods and services' table in Column I-M for a worksheet to help Applying IFRS IFRS 15.22-30, B22, B48-B56, B62, B82, B84, IE33-IE41, BC1A, BC27A-BC27H, BC84-BC116U,
determine whether goods and services represent performance obligations. After Section 4 (chapter introduction), Section 4.1, Section 4.2, Section IE44-IE65A, IE222-IE229, IE254-IE256, IE271-IE274, IE278- BC363-BC367, BC371-BC373 , BC406-
completing that tab, list the performance obligations determined in Column C. 4.3 IE302,IE322-IE327 BC407, BC414A-BC414B, BC414O-
BC414Y, BC470-BC472
Note that contracts with customers may include promises that are implied by an Additional sections
entity's customary business practices, published policies, or specific statements Rights of return do not represent performance obligations:
if, at the time of entering into the contract, those promises create a valid Section 4.7
expectation of the customer that the entity will transfer a good or service to the
customer. Non-refundable upfront fees do not necessarily indicate the
transfer of a performance obligation upfront: Section 5.8
A promise to transfer a series of distinct goods or services that are substantially
the same and have the same pattern of transfer to the customer (that is, each Determining whether licences are distinct from other performance
would be satisfied over time and have the same method to measure the entity's obligations: Section 8.1
progress) would represent a single performance obligation.

Do not enter service-type warranties or options granting material rights as

performance obligations on this screen. They will be added in Step 2.3 and Step
2.4, respectively.

2.2 Principal versus agent Is another party involved in providing goods or services to the If the answer is yes, proceed to Step 2.2.1. Applying IFRS IFRS 15.B34-B38 BC385E
customer? Section 4.4
If the answer is no, proceed to Step 2.3.

2.2.1 Principal versus agent When another party is involved in providing goods or services to Note the results of any principal-agent analysis in the comments in Column E. Applying IFRS IFRS 15.B34-B38, IE230-IE248F BC1A, BC27A-BC27H, BC379-BC385Z
assessment a customer, the entity needs to determine whether a principal- Section 4.4
agent analysis is required. The entity is a principal when the nature of its promise is a performance
obligation to provide the specified goods or services itself and an agent when its
If a principal-agent analysis is required, has the entity promise is to arrange for those goods or services to be provided by another
determined whether it controls each specified good or service party.
before that good or service is transferred to the customer and,
therefore, whether the entity is acting in the capacity as a
principal or an agent?

2.3 Service-type warranties Could any of the promised services be considered warranties If the answer is yes, enter any service-type warranties in Column C (rather than Applying IFRS IFRS 15.B27-B33, IE222-IE229, IE234-IE238 BC368-BC378
that are sold separately or that provide a service in addition to simply 'yes'). Section 9.1
assurance that the related product complies with agreed-upon
specifications? If the answer is no, proceed to Step 2.4.

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Contract analysis enabler
Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
2.4 Options granting material Does the contract contain any options for the customer to If the answer is yes, enter any options granting material rights in Column C Applying IFRS IFRS 15.B39-B43, B48-B51, IE249-IE274 BC386-BC401
rights acquire additional goods or services for free or at a discount (for (rather than simply 'yes'). Section 4.6, Section 7.8
example, sales incentives, customer award credits (or points),
contract renewal options, or other discounts on future goods or If the answer is no, proceed to Step 3.1. Additional sections
services) that provide a material right to the customer that it Determining whether non-refundable upfront fees indicate the
would not receive without entering into the contract? existence of renewal options: Section 5.8

Determining the stand-alone selling price of options: Section

6.1.5

3.1 Base transaction price Is there an amount of the transaction price in the contract that is If the answer is yes, enter the base transaction price in Column E. Applying IFRS IFRS 15.47-49, B48-B51, IE271-IE274 BC1A, BC27A-BC27H, BC181-BC188D,
not variable? Section 5 (chapter introduction) BC259-BC265
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 Additional sections
customer, excluding amounts collected on behalf of third parties, such as sales Non-refundable upfront fees should be included in the
taxes transaction price and allocated to the performance obligations:
Section 5.8

Amounts billed to customers: Question 4-7 and the FASB

differences box in section 4.4.4

3.2 Variable consideration Is any of the consideration in the contract variable or uncertain? Examples of variable consideration include discounts, rebates, refunds, credits, Applying IFRS IFRS 15.50-52, B20-B27, B63-B63B, B72, B74, IE7-IE17, BC189-BC194, BC363-BC367, BC385X-
price concessions, incentives, performance bonuses, penalties or other similar Section 5.2 (chapter introduction), Section 5.2.1, Question 5-7 (in IE101-IE133 BC385Z, BC414A-BC414B, BC415-BC421J,
items. section 5.2.3), Section 5.4 BC477-BC478

Note that an amount of consideration would be variable if an entity's entitlement Additional sections
to the consideration is contingent on the occurrence or non-occurrence of a Determining the difference between collectability and implicit
future event. For example, if a product was sold with a right of return or a fixed price concessions: Section 3.1.5
amount is promised as a performance bonus on achievement of a specified
milestone. Rights of return are estimated as variable consideration: Section
4.7
For sales-based or usage-based royalties promised in exchange for a licence of
intellectual property, refer to the exception to the general variable consideration Sales-based or usage-based royalties on licences of intellectual
requirements in IFRS 15.B63. property are not estimated: Section 8.5

If the answer is yes, discuss the sources of variable consideration in Column E Estimating gross revenue as a principal: Question 4-7 (in section
and proceed to Step 3.2.1. 4.4.4) and FASB differences box

If the answer is no, proceed to Step 3.3. Distinguishing between optional purchases and variable
consideration: Question 4-10, Question 4-12 (in section 4.6)

Timing of recognition for variable consideration payable to a

customer: Section 5.7.3

Distinguishing between a right of return and an assurance-type

warranty: Question 9-3 (in section 9.1.1)

3.2.1 Estimating variable Has the entity determined whether the 'expected value' or the If the answer is yes, enter the estimation method in Column E and proceed to Applying IFRS IFRS 15.53-55, IE105-IE108 BC195-BC202, BC479
consideration 'most likely amount' method better predicts the amount to which Step 3.2.2. Section 5.2.2
it will be entitled for each source of variable consideration?
If the answer is no, determine the appropriate estimation method before Additional sections
proceeding to Step 3.2.2. Example of estimating variable consideration using the expected
value method: Section 5.2.3

Measurement of refund liability in relation to estimation of

variable consideration: Section 5.3

Considering the constraint when estimating variable

consideration: Question 5-8

3.2.2 Constraint on revenue Has the entity determined the amount of the estimate of An estimate of variable consideration is constrained to the extent that it is not Applying IFRS IFRS 15.56-59, IE37-IE41, IE109-IE140 BC203-BC223, BC480
recognised variable consideration that is constrained? highly probable that a significant revenue reversal in the amount of cumulative Section 5.2.3
revenue recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.

3.3 Significant financing Does the timing of payments agreed to by the parties to the If the answer is yes, adjust the promised amount of consideration for the effects Applying IFRS IFRS 15.60-65, IE134-IE154 BC229-BC247
component contract (either explicitly or implicitly) provide the customer or of the time value of money. Section 5.5
the entity with a significant benefit of financing the transfer of
goods or services to the customer such that the contract An entity needs to determine whether it will apply the practical expedient allowing
contains a significant financing component? the entity not to consider the effects of a significant financing component if the
time between payment and performance is one year or less.

If the entity is receiving financing, the time value of money impact will increase
the transaction price. If the entity is providing financing, the time value of money
impact will decrease the transaction price.

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Contract analysis enabler
Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
3.4 Non-cash consideration Is the entity entitled to any non-cash consideration? If the answer is yes, the entity should include the fair value (measured at contract Applying IFRS IFRS 15.66-69, IE155-IE158 BC1A, BC27A-BC27H, BC248-BC254H
inception) of the non-cash consideration received in the transaction price. Section 5.6

3.5 Consideration payable to the Is there any amount of consideration that is paid or payable to If the answer is yes, the amount of consideration that is not provided in exchange Applying IFRS IFRS 15.26-30, 70-72, IE159-IE162 BC255-BC258
customer the customer that is not provided in exchange for a distinct good for a distinct good or service or that exceeds the fair value of any distinct good or Section 5.7
or service? service received will reduce the transaction price.

3.6 Changes in transaction price Has the transaction price changed since contract inception? If the answer is yes, these changes will be incorporated into the transaction Applying IFRS IFRS 15.59, 87-90, B23-B24, IE19, IE22-IE32, IE37-IE41, BC82-BC83, BC224-BC228, BC286
price. Section 5.2.4, Section 5.9, Section 6.5 IE124-IE133

Changes to the transaction price include resolution of uncertain events or other

changes in circumstances that change the amount of consideration to which an
entity expects to be entitled in exchange for the promised goods or services.

4.1 Allocating attributable Is any variable consideration in the contract attributable to either If the answer is yes, the entity may be able to allocate that variable consideration Applying IFRS IFRS 15.75, 84-86, IE129-IE133, IE178-IE187, IE289-IE296 BC284-BC285
variable consideration one or more, but not all, performance obligations in the contract entirely to the performance obligation or distinct good or service that forms part Section 6.3
or one or more, but not all, distinct goods or services promised of a single performance obligation.
in a series of distinct goods or services that forms a part of a Additional sections
single performance obligation? Allocation of a variable discount: Question 6-5

4.2 Stand-alone selling price Has the entity determined the stand-alone selling price for each If the answer is yes, note the estimation method and the impact on the allocation Applying IFRS IFRS 15.73-80, B42-B43, IE163-IE187, IE250-IE253, IE267- BC266-BC280, BC287-BC293, BC389-
performance obligation? of the transaction price in Column E. Section 6 (chapter introduction), Section 6.1, Section 6.2 IE270, IE289-IE296 BC401, BC473-BC476

This stand-alone selling price should be adjusted to exclude the effect of variable Additional sections
consideration attributed to a performance obligation in Step 4.1. Allocation of transaction price to elements outside the scope of
the standard: Section 6.6
Note that this may result in entering a stand-alone selling price of 0 if the variable
consideration attributed in Step 4.1 represents the total amount to which the Interaction between the application guidance on breakage and
entity expects to be entitled for that performance obligation. allocation of transaction price: Section 7.9

All variable consideration not specifically attributed in Step 4.1 would be

allocated on a relative stand-alone selling price basis.

4.3 Allocating attributable Is the discount in the contract attributable to one or more, but If the answer is yes, the entity may be able to allocate that discount entirely to Applying IFRS IFRS 15.81-83, IE167-IE177 BC281-BC283
discount not all, performance obligations? one or more, but not all, performance obligations. Section 6.4

5.1 Transfer of control Does the performance obligation meet any of the following If the answer to any of the questions is yes for a performance obligation, that Applying IFRS IFRS 15.35-37, B2-B13, B55-B62, IE49-IE58 IE66-IE90, BC1A, BC27A-BC27H, BC124-BC147,
criteria resulting in transfer of control over time? performance obligation is satisfied over time. Section 7.1 (chapter introduction), Section 7.1.1, Section 7.1.2, IE275-IE313 BC149-BC152, BC402-BC405, BC407-
Section 7.1.3 BC414Y, BC464-BC469
Performance obligations that do not meet any of these criteria are satisfied at a
The customer simultaneously receives and consumes the point in time. Additional sections
benefits provided by the entity's performance as the entity Determining whether a licence is transferred over time: Section
performs (Note that a licence that provides a customer with a If applicable, note how each criterion applies to each relevant performance 7.6, Section 8 (chapter introduction), Section 8.2, Section 8.3
right to access the entity's intellectual property throughout the obligation in Column E.
licence period, as opposed to a right to use the entity's
intellectual property as it exists at the point in time at which the When a performance obligation includes a licence of IP and one or more other
licence is granted, would meet this criterion in accordance with promised goods or services, consider the nature of the combined performance
IFRS 15.60) obligation (including the licences application guidance when the licence is the
predominant item in the combined performance obligation) when: (1) determining
whether the overall promise is satisfied over time or at a point in time; and (2)
The entity's performance creates or enhances an asset that the selecting an appropriate method for measuring progress of that performance
customer controls as the asset is created or enhanced obligation if it is satisfied over time.

The entity's performance does not create an asset with an

alternative use to the entity and the entity has an enforceable
right to payment for performance completed to date.

5.2 Repurchase provisions Does the contract contain a repurchase provision related to the If the answer is yes, proceed to Step 5.2.1. Applying IFRS IFRS 15.34, B64-B65 BC422-BC423, BC432-BC433
same or similar goods in the original agreement? Section 7.3 (chapter introduction with extract)
If the answer is no, proceed to Step 5.3.
5.2.1 Call option Does the contract specify that the seller has an unconditional If the answer is yes, note how the call option impacts the transfer of control in Applying IFRS IFRS 15.B66-B69, IE314-IE318 BC424-BC427, BC432-BC433
obligation or right to repurchase the asset? Column E for all applicable performance obligations. Section 7.3.1

Control does not transfer before the repurchase option expires unexercised.

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Contract analysis enabler
Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
5.2.2 Put option Does the customer in this contract have the ability to require the If the answer is yes, note how the put option impacts the transfer of control in Applying IFRS IFRS 15.B70-B76, IE314-IE315, IE319-IE321 BC428-BC433
entity to repurchase the asset? Column E for all applicable performance obligations. Section 7.3.2, Section 7.3.3

For repurchase provisions within the scope of IFRS 15, an entity accounts for the
transaction as a sale with the right of return (i.e., variable consideration subject to
the constraint).

For repurchase provisions that are initially accounted for as financing or leases,
control does not transfer before the repurchase option expires unexercised.

5.3 Bill-and-hold arrangements Could the contract be considered a bill-and-hold arrangement? If the answer is yes, proceed to Step 5.3.1. Applying IFRS IFRS 15.B79-B80, IE322-IE327 No related Basis for Conclusions
Section 7.5
If the answer is no, proceed to Step 5.4.
5.3.1 Bill-and-hold transfer of In addition to applying the point-in-time requirements, have the Note how the bill-and-hold criteria impact the assessment of transfer of control in Applying IFRS IFRS 15.B81-B82, IE322-IE327 No related Basis for Conclusions
control criteria following criteria been met? Column E for all applicable performance obligations. Section 7.5

- The reason for the bill-and-hold arrangement must be

substantive
- The product must be identified separately as the customer's
- The product currently must be ready for physical transfer to
the customer
- The entity cannot have the ability to use the product or to
direct it to another customer

5.4 Consignment arrangements Could the contract be considered a consignment arrangement? If the answer is yes, proceed to Step 5.4.1. Applying IFRS IFRS 15.B77-B78 No related Basis for Conclusions
Section 4.5, Section 7.4
If the answer is no, proceed to Step 5.5.

5.4.1 Consignment transfer of Has control of the good transferred to the dealer or end- Note how the consignment arrangement impacts the assessment of transfer of Applying IFRS IFRS 15.B77 No related Basis for Conclusions
control criteria customer? control in Column E for all applicable performance obligations. Section 4.5, Section 7.4

5.5 Customer acceptance If the contract contains customer acceptance provisions, has Note how any customer acceptance provisions impact the assessment of transfer Applying IFRS IFRS 15.B83-B86 No related Basis for Conclusions
the seller objectively determined that control of a good or of control in Column E for all applicable performance obligations. Section 7.2.1
service has been transferred to the customer in accordance with
the agreed-upon specifications in the contract?

5.6 Revenue recognition pattern When does the customer obtain control of the promised goods Applying IFRS IFRS 15.31-34, 38-46, B14-B19, B44-B51, B55, B60-B61, BC117-BC123, BC148, BC153-BC180,
or services transferred? Section 7 (chapter introduction), Section 7.1.4, Section 7.2 B63-B63B, IE14-IE17, IE37-IE41, IE91-IE100, IE178-IE182, BC219, BC396-BC401, BC413-421J,
IE297-IE302, IE307-IE313 BC464-BC469
Additional sections
Timing of revenue for sales-and usage-based royalties on
licences of intellectual property: Section 5.4.2, Section 8.5

Timing of revenue with a right of return: Section 7.7

For performance obligations transferred over time, has the In Column E, note the appropriate measure of progress for any performance
entity determined which measure of progress best depicts the obligations satisfied over time. Timing of revenue for customer options: Section 7.8
transfer of control of goods or services to the customer?
Timing of revenue for breakage: Section 7.9

Timing of revenue for non-refundable upfront fees: Section 5.8

For performance obligations transferred at a point in time, has In Column E, note the assessment of transfer of control for any performance Timing of revenue for licences: Section 8.3, Section 8.4
the entity determined when the customer obtains control of the obligations satisfied at a point in time.
promised asset? Timing of revenue for service-type warranties: Section 9.1.2

C.1 Costs to obtain a contract Has the entity incurred any incremental costs of obtaining the An entity needs to determine whether it will apply the practical expedient allowing Applying IFRS IFRS 15.8, 91–94, IE189–IE193 BC297–BC303
contract that the entity expects to recover? the entity to recognise incremental costs of obtaining a contract as expenses Section 9.3 (chapter introduction), Section 9.3.1
when incurred if the amortisation period of the asset would have been one year
or less.

If the answer is yes, proceed to C.1.1.

If the answer is no, proceed to C.2.

C.1.1 Sources of costs to obtain Has the entity determined the amount of incremental costs of If the answer is yes, note the amount and how it was determined in Column E Applying IFRS IFRS 15.8, 91–94, IE189–IE193 BC297–BC303
a contract obtaining the contract to be capitalised? and proceed to Step C.2. Section 9.3 (chapter introduction), Section 9.3.1

If the answer is no, determine the amount before proceeding to Step C.2.

C.2 Costs to fulfil a contract Has the entity incurred any costs to fulfil the contract that are If the answer is yes, proceed to C.2.1. Applying IFRS IFRS 15.8, 95-98, IE192, IE194-IE196 BC304-BC308, BC312-BC316
not within the scope of another standard and meet the following Section 9.3 (chapter introduction), Section 9.3.2
criteria? If the answer is no, proceed to C.3.

- The costs relate directly to the contract or to an anticipated

contract that the entity can specifically identify
- The costs generate or enhance resources of the entity that will
be used in satisfying (or in continuing to satisfy) performance
obligations in the future
- The costs are expected to be recovered

C.2.1 Sources of costs to fulfil a Has the entity determined the amount of costs to fulfil the If the answer is yes, note the amount and how it was determined in Column E Applying IFRS IFRS 15.8, 95-98, IE192, IE194-IE196 BC304-BC308, BC312-BC316
contract contract to be capitalised? and proceed to Step C.3. Section 9.3 (chapter introduction), Section 9.3.2

If the answer is no, determine the amount before proceeding to Step C.3.

C.3 Amortisation of contract For the capitalised contract costs, has the entity determined the In Column E, note the appropriate amortisation expense and the amortisation Applying IFRS IFRS 15.99 – 100, IE192 – IE193 BC309
costs systematic basis for amortisation that is consistent with the method for the capitalised amounts. Section 9.3.3
transfer to the customer of the goods or services to which the
capitalised contract costs relate?

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Contract analysis enabler
Tool step Question Response Notes Comments Applying IFRS reference1 IFRS 15 technical requirement reference IFRS 15 Basis for Conclusions
C.4 Impairment of contract costs Does the carrying amount of the capitalised contract cost If the answer is yes, the contract cost asset is impaired. Applying IFRS IFRS 15.101-104 BC310-BC311
exceed: Section 9.3.4
- The remaining amount of consideration that the entity expects
to receive in exchange for the goods or services to which the
asset relates, less
- The costs that relate directly to providing those goods and
services and that have not been recognised as expenses

Presentation and disclosure Entities should consider the presentation and disclosure Note any presentation or disclosure observations in Column E. Applying IFRS IFRS 15.105-129, B87-B89, IE197-IE221 BC327-BC361
impacts of the new standard. This template does not contain Chapter 10 (all), Appendix A
any questions related to presentation and disclosure. As you
determine the presentation and disclosure impacts of the new
standard, please consider the relevant guidance in this section
from IFRS 15 Revenue from Contracts with Customers, from
the Basis for Conclusions of IFRS 15 Revenue from Contracts
with Customers, EY’s Applying IFRS: A closer look at the new
revenue recognition standard publication and EY’s IFRS
Disclosure Checklist (IFRS 15).

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