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Objective: and Joint Ventures Insurance Contracts Within The Scope of IFRS 4 Insurance Contracts and Non

IFRS 15 establishes principles for reporting revenue from contracts with customers. It provides a five-step model for recognizing revenue that applies to all contracts with customers, with some exceptions. IFRS 15 was issued in 2014 and is effective for annual periods beginning on or after January 1, 2018.

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28 views1 page

Objective: and Joint Ventures Insurance Contracts Within The Scope of IFRS 4 Insurance Contracts and Non

IFRS 15 establishes principles for reporting revenue from contracts with customers. It provides a five-step model for recognizing revenue that applies to all contracts with customers, with some exceptions. IFRS 15 was issued in 2014 and is effective for annual periods beginning on or after January 1, 2018.

Uploaded by

KATHRYN CLAUDETTE RESENTE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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. The standard
provides a single, principles based five-step model to be applied to all contracts with customers.

IFRS 15 was issued in May 2014 and applies to an annual reporting period beginning on or after 1
January 2018. On 12 April 2016, clarifying amendments were issued that have the same effective date as
the standard itself.

Objective
The objective of IFRS 15 is to establish the 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. [IFRS 15:1] Application of the standard
is mandatory for annual reporting periods starting from 1 January 2018 onwards. Earlier application is
permitted.

Scope
IFRS 15 Revenue from Contracts with Customers applies to all contracts with customers except for:
leases within the scope of IAS 17 Leases; financial instruments and other contractual rights or
obligations within the scope of IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements,
IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates
and Joint Ventures; insurance contracts within the scope of IFRS 4 Insurance Contracts; and non-
monetary exchanges between entities in the same line of business to facilitate sales to customers or
potential customers. [IFRS 15:5]

A contract with a customer may be partially within the scope of IFRS 15 and partially within the scope of
another standard. In that scenario: [IFRS 15:7]

• if other standards specify how to separate and/or initially measure one or more parts of the
contract, then those separation and measurement requirements are applied first. The
transaction price is then reduced by the amounts that are initially measured under other
standards;

• if no other standard provides guidance on how to separate and/or initially measure one or more
parts of the contract, then IFRS 15 will be applied.

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