"Mastering IFRS 15: Revenue from Contracts with Customers"

Key aspects of IFRS 15 include:

1. Core Principle: The core principle of IFRS 15 is that an entity should recognize revenue in a way that reflects the transfer of promised goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services.

2. Five-Step Model: IFRS 15 introduces a five-step model to guide revenue recognition:

??- Identify the Contract(s) with a Customer: A contract can be written, oral, or implied by an entity’s customary business practices, and it must meet specific criteria to be accounted for under IFRS 15.

??- Identify the Performance Obligations in the Contract: Performance obligations are promises in a contract to transfer goods or services to the customer.

??- Determine the Transaction Price: The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring the promised goods or services to a customer.

??- Allocate the Transaction Price to the Performance Obligations in the Contract: The transaction price is allocated to each distinct performance obligation based on the relative standalone selling prices of the goods or services being provided.

??- Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation: Revenue is recognized when a performance obligation is satisfied by transferring the promised good or service to the customer.

3. Contract Costs: IFRS 15 requires an entity to recognize an asset for the costs to obtain or fulfill a contract with a customer (if those costs meet certain criteria).

4. Significant Financing Component: The standard includes guidance on accounting for the time value of money if there is a significant financing component in a contract.

5. Disclosure Requirements: IFRS 15 requires entities to provide more informative and relevant disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows from contracts with customers.

6. Application: IFRS 15 applies to all contracts with customers except for those that are within the scope of other standards (such as leases or insurance contracts).

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