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|
Examples 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.
Examples 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 (Institute of Chartered Accountants of Pakistan)
Bachelor of Accounting Honours (Asia e University, Malaysia)