Revenue – ifrs 15 handbook

8 
Contract modifications
8.1 
Identifying a contract modification
Assessment focuses on enforceability .......................................................................................................................... 196
Criteria to determine when a modification is approved .................................................................................................. 196
Contract claims are evaluated using the guidance on contract modifications ................................................................ 197
Partial contract terminations are accounted for as contract modifications ..................................................................... 198
8.2 
Accounting for a contract modification
Different approaches for common types of contract modifications ............................................................................... 204
Distinct goods or services in a series that are treated as a single performance obligation are considered
separately ..................................................................................................................................................................... 204
Interaction of new contracts with pre-existing contracts needs to be considered ......................................................... 204
Accounting for contract asset on termination of an existing contract and creation of a new one ................................... 204
9 Licensing
9.1 
Licences of intellectual property
Different accounting for a licence and sale of intellectual property (IP) .......................................................................... 208
No definition of intellectual property ............................................................................................................................. 208
IP that forms part of tangible asset ................................................................................................................................ 208
Distinguishing between a licence and service ............................................................................................................... 208