Revenue – ifrs 15 handbook

6.3 
Partially in scope
IFRS 15.7
A contract with a customer may be partially in the scope of the revenue standard 
and partially in the scope of other accounting guidance. If the other accounting 
guidance specifies how to separate and/or initially measure one or more parts of 
a contract, then an entity first applies those requirements. Otherwise, the entity 
applies the revenue standard to separate and/or initially measure the separately 
identified parts of the contract.
The following flowchart highlights the key considerations when determining the 
accounting for a contract that is partially in the scope of the revenue standard.

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166 | Revenue – IFRS 15 handbook
No
Yes
No
Apply the revenue standard
the contract (or the part
to
the contract in its scope)
of
Apply the guidance in
revenue standard to
the
separate and/or
initially measure
the contract
Apply that guidance to
separate and/or
initially measure
the contract
Exclude the amount
initially measured
under that guidance
from the transaction
price
Yes
No
Is the contract partially
in the scope of other
accounting guidance?
Does that standard
have separation and/or
initial measurement
guidance that applies?
Yes
Apply that other guidance
Is the contract fully in the
scope of other accounting
guidance?
IFRS 15.6
The revenue standard excludes from its scope contracts with a collaborator or 
a partner that are not customers, but rather share with the entity the risks and 
rewards of participating in an activity or process. However, a contract with a 
collaborator or a partner is in the scope of the revenue standard if the counterparty 
meets the definition of a customer for part or all of the arrangement. Accordingly, a 
contract with a customer may be part of an overall collaborative arrangement and 
the revenue standard is applied to that part.

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© 2019 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
6 Scope | 167
6.3 Partially in scope
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