Revenue – ifrs 15 handbook

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Revenue
IFRS
®
15 handbook 
June 2019
home.kpmg/ifrs

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Contents
Facing new challenges 
1
Overview
2
1 Step 1 – Identify the contract with a customer 
3
1.1 Criteria to determine whether a contract 
exists
3
1.2 Contract term 
14
1.3 Consideration received before a contract 
exists
17
1.4 Combination of contracts 
19
2 Step 2 – Identify the performance obligations 
in the contract 
23
2.1 Distinct goods or services 
24
2.2 Implied promises and administrative tasks 
35
2.3 Series of distinct goods or services 
39
3 Step 3 – Determine the transaction price 
46
3.1 Variable consideration (and the constraint) 
47
3.2 Significant financing component 
63
3.3 Non-cash consideration 
78
3.4 Consideration payable to a customer 
81
3.5 Sales taxes 
88
4 Step 4 – Allocate the transaction price to the 
performance obligations in the contract 
90
4.1 Determine stand-alone selling prices 
91
4.2 Allocate the transaction price 
98
4.3 Changes in the transaction price 
111
5 Step 5 – Recognise revenue when or as the