Revenue – ifrs 15 handbook

Account for the contract modification as…
A separate contract
A termination of an 
existing contract and 
creation of a new 
contract
Part of the original 
contract
Example 1
Addition of a distinct 
good or service at an 
undiscounted price 
(e.g. a customer adds 
a text messaging 
package to an existing 
mobile phone service 
package and pays the 
standard price offered 
to customers for that 
additional package)
Addition of a distinct 
good or service at a 
price that is discounted 
from its stand-alone 
selling price (e.g. a 
customer receives free 
premium channel cable 
service); all remaining 
services provided 
under the original 
contract are distinct
Addition of a good or 
service to a contract 
that consists of a 
single, integrated 
performance obligation 
where that additional 
good or service is 
highly inter-related 
with the single 
performance obligation 
(e.g. changing the 
floor plan of a partially 
constructed house)
Example 2
Modification of the 
contract price, with 
no change in the 
contracted goods 
or services and the 
remaining goods 
and services are 
distinct from those 
already delivered 
(e.g. a change in the 
unit price for the 
remaining quantity of 
homogeneous items)
Modification of the 
contract price, with 
no change in the 
contracted goods 
or services 
and
the 
remaining goods and 
services are not distinct 
from those already 
delivered (e.g. a change 
in the contract price of 
a highly customised 
piece of software)

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8 Contract modifications | 201
8.2 Accounting for a contract modification
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