IFRS 15

Question 1

Step 1

Answer 1

Identify the contract with customer

• the rights and obligations of each party
• how is price determined
• what foods and services to be supplied

Question 2

Step 2

Answer 2

Identify performance obligations

Question 3

Step 3

Answer 3

Determine the transaction price

Question 4

Step 4

Answer 4

Allocate the transaction price to performance obligations

Question 5

Step 5

Answer 5

Recognise revenue when an entity satisfies a performance obligation

Example can be the customer has legal title, physical possessions