IFRS 15 Illustrative Examples PROVIDE a general overview of the types of examples included in International Financial Reporting Standard. IFRS 15 provides GUIDANCE on recognizing revenue from contracts with customers.
IFRS 15 Illustrative Examples [Scenarios]
| (a) Sale of Goods Illustrations related to the sale of physical goods, such as the recognition of revenue from the SALE of inventory. |
| (b) Rendering of Services Example(s) of recognizing revenue from service contracts, including situations where SERVICES are provided over time or at a specific point in time. |
| (c) Construction Contracts Illustrations that address ‘Revenue Recognition’ for long-term CONSTRUCTION projects, which often involve multiple performance obligations and complex accounting considerations. |
| (d) Licenses Example(s) related to revenue recognition from licenses of intellectual property, such as software LICENSES or patents. |
| (e) Sales with Right of Return Illustrations that explain how to account for revenue when there is a right of return, such as in the case of CONSIGNMENT sales or certain retail transactions. |
| (f) Non-Cash Consideration Examples that demonstrate how to account for revenue when consideration is received in the form of NON-CASH assets or services. |
| (g) Contract Modification Illustrations related to changes or MODIFICATIONS in contracts and how they impact the recognition of revenue. |
The Bottom Line
For IFRS 15 Illustrative Examples, REFER [Revenue from Contracts with Customers] ‘International Financial Reporting Standard’, which INCLUDES Detailed Explanations, Numerical Calculations and Specific Industry Aspects.
Chartered Accountant – ICAP
Bachelor of Accounting (Honours) – AeU, Malaysia