Revenue – ifrs 15 handbook

If the entity…
Then…
For example…
IFRS 15.B84
Can objectively verify 
that the goods or 
services comply with 
the specifications 
underlying acceptance
Customer acceptance 
would be a formality, 
and revenue could 
be recognised before 
explicit acceptance
The customer 
acceptance clause 
is based on meeting 
objective size and 
weight specifications
IFRS 15.B85
Cannot objectively 
determine whether 
the specifications have 
been met
It is unlikely that 
the entity would be 
able to conclude 
that the customer 
has obtained control 
before formal 
customer acceptance
The customer 
acceptance clause is 
based on a modified 
product functioning in 
the customer’s new 
production line
IFRS 15.B86
Delivers products 
for trial or evaluation 
purposes and the 
customer is not 
committed to paying any 
consideration until the 
trial period lapses
Control of the product 
is not transferred to 
the customer until 
either the customer 
accepts the product or 
the trial period lapses
The customer 
acceptance clause 
specifies that the 
customer may use 
prototype equipment 
for a specified period 
of time
IFRS 15.B84
An entity’s experience with similar contracts may provide evidence that goods or 
services transferred to the customer are based on the agreed specifications. 
For further discussion on the accounting for consignment arrangements that may 
have attributes similar to customer acceptance clauses, see 
Section 5.6
.

---

© 2019 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
162 | Revenue – IFRS 15 handbook
6 Scope
Overview
The standard applies to contracts to deliver goods or services to a customer. 
Its guidance applies to contracts with customers in all industries. However, a 
contract with a customer is outside the scope of the revenue standard if it falls 
in the scope of other specific requirements.
In some cases, the revenue standard is applied to part of a contract or, in certain 
circumstances, to a portfolio of contracts.