Revenue – ifrs 15 handbook

Certain contracts can be excluded from remaining performance 
obligation disclosures
The practical expedient allows an entity to exclude from the remaining 
performance obligations disclosure contracts that have an original expected 
duration of one year or less. However, an entity is not precluded from including 
all contracts in the disclosure.

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324 | Revenue – IFRS 15 handbook
Constrained transaction price is used in the remaining 
performance obligation disclosures
The transaction price used in the remaining performance obligations disclosure 
is the constrained amount. An entity also explains qualitatively whether any 
consideration is not included in the transaction price – e.g. constrained variable 
consideration – and, therefore, is not included in the remaining performance 
obligations disclosure.
12.1.4 
Significant judgements when applying the standard
IFRS 15.123
An entity discloses the judgements and changes in judgements made in applying 
the standard that affect the determination of the amount and timing of revenue 
recognition – specifically, those judgements used to determine whether an entity 
acts as a principal or an agent, the timing of the satisfaction of performance 
obligations, the transaction price and amounts allocated to performance obligations.
IFRS 15.124
For performance obligations that are satisfied over time, an entity describes the 
method used to recognise revenue – e.g. a description of the output or input 
method and how those methods are applied – and why the methods are a faithful 
depiction of the transfer of goods or services.
IFRS 15.125
For performance obligations that are satisfied at a point in time, the standard 
requires a disclosure about the significant judgements made to evaluate when the 
customer obtains control of the promised goods or services.
IFRS 15.126
An entity also discloses information about the methods, inputs and assumptions 
used to:
– determine the transaction price, which includes estimating variable 
consideration, assessing whether the variable consideration is constrained, 
adjusting the consideration for a significant financing component and measuring 
non-cash consideration; 
– allocate the transaction price, including estimating the stand-alone selling 
prices of promised goods or services and allocating discounts and variable 
consideration; and
– measure obligations for returns and refunds and other similar obligations.