IFRS 15 Illustrative Examples (Types) – Revenue Recognition

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]

IFRS 15 Illustrative Examples
(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.

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