Revenue – ifrs 15 handbook

Little difference in accounting for sales of real estate to customers 
and non-customers
IAS 16, 40
Because an entity applies the guidance on measuring the transaction price for 
both customer and non-customer transactions, the difference in accounting for 
an ordinary (customer) vs a non-ordinary (non-customer) sale of real estate is 
generally limited to the presentation in the statement of comprehensive income 
(revenue and cost of sales, or gain or loss).

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298 | Revenue – IFRS 15 handbook
Transfers to inventory are still possible if specific criteria are met
IAS 16.68A, 40.58
If an entity sells or transfers an item of property, plant and equipment or an 
investment property, then it recognises a gain or loss on disposal outside 
revenue. However, in limited circumstances it remains possible that an item 
may be transferred to inventory before sale, in which case the entity recognises 
revenue on disposal – for example:
– an entity that, in the course of its ordinary activities, routinely sells items of 
property, plant and equipment that it has held for rental to others transfers 
these assets to inventory when they cease to be rented and become held for 
sale; and
– an entity transfers investment property to inventory when, and only when, 
there is a change of use – e.g. the start of development with a view to sale.

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11 Presentation | 299
11.1 Statement of financial position
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11 Presentation
Overview
This section addresses the various presentation requirements in the standard.