IFRS 15

Question 1

What does IFRS 15 cover?

Answer 1

Revenue from contracts with customers

Question 2

How many stages do you have to recognise revenue?

Answer 2

There are five stages:
1. Identify the contract
2. Identify the performance obligations
3. Identify the transaction price
4. Allocate the transaction price to the performance obligations.
5. Recognise revenue when the performance obligation has been satisfied

Question 3

How do you do stage 1 to recognise revenue?

Answer 3

1. Identify the contract (written, verbal or implied)
   Ensure it is:
   Agreed by all parties
   Commercial substance