IFRS 15: Revenue from Contracts with Customers - A Deep Dive

Develop a clear understanding of revenue under contracts with customers. Clarify what counts as income from business operations and the money an entity is entitled to receive against consideration.

Explore the distinction between revenue and other income within IFRS 15, examining operating revenue, income definitions, and practical case studies such as pharmacovigilance and export incentives.

Identify sources of revenue from goods, services, and other income, and apply IFRS 15 revenue recognition under contracts using performance obligations and percentage of completion.

Explore contract risks under IFRS 15 by comparing fixed-price and planned versus actual costs, recognizing milestone revenue, and assessing cost overruns and profitability implications.

Explore IFRS 15 revenue recognition for maintenance and service contracts, comparing straight-line recognition over the contract life with activity-completion approaches, and illustrating with examples of fixed-base and transaction-based arrangements.

Explore how IFRS 15 handles royalties from IP use, including exploitation of patents, trademarks, copyrights and software, and recognize revenue based on the agreement substance across royalty models.

Learn how IFRS 15 recognizes revenue on the sale of goods, with emphasis on transfer of control, delivery, and buyer acceptance of obligations.

Learn how to manage bundled contracts with multiple element deliverables under IFRS 15 by identifying components, allocating revenue, and recognizing revenue as control transfers when goods and services are delivered.

Explore the five-step model for revenue recognition under IFRS 15, including identifying contracts and performance obligations, determining transaction price, and recognizing revenue over time or at a point in time.

Explore special considerations under IFRS 15, including dealer networks, revenue recognition with returns and warranties, non-refundable fees, loyalty programs and gift cards, licenses, and principal and agent arrangements.

Explore how contract modifications are accounted for under IFRS 15, deciding when a modification creates a separate contract or remains part of the contract, and how price changes affect this.

Explore IFRS 15 presentation and disclosures, including contract assets and liabilities, receivables, revenue recognition, and the measurement of transaction price with variable consideration and performance obligations.