What is IFRS 15?
— IFRS 15 is a new revenue recognition standard that provides a five-step process for recognizing revenue and focuses on performance obligations and the transfer of control to the customer.
How does IFRS 15 define transactions?
— IFRS 15 does not differentiate between sales of goods, services, and construction contracts, but instead defines transactions based on performance obligations.
When is revenue recognized under IFRS 15?
— Revenue is recognized when control of a good or service is transferred to a customer, with IFRS 15 providing more guidance on key practice issues compared to existing standards.
How is revenue recognized over time?
— Revenue is recognized over time if the customer simultaneously receives and consumes the benefits, or if the entity's performance creates or enhances an asset controlled by the customer.
When is revenue recognized at a point in time?
— Revenue is recognized at a point in time if the customer does not simultaneously receive and consume the benefits, and the entity's performance does not create or enhance an asset controlled by the customer.
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