IFRS 15: The international accounting standard for recognizing revenue from customer contracts.
→ Applies to all entities providing goods/services, unless covered by other standards.
👉 Core principle: Recognize revenue when control of goods/services is transferred, at an amount reflecting expected consideration.
Five-step model to apply this principle:
1. Identify the contract(s) with the customer.
2. Identify the performance obligations in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to each obligation.
5. Recognize revenue when each obligation is satisfied.
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