Revenue – ifrs 15 handbook

Practical expedient
Description
Practical expedient 1 
(see 
13.2.1
)
For completed contracts, an entity need not restate 
contracts that: 
– begin and end in the same annual reporting 
period; or 
– are completed contracts at the beginning of the 
earliest period presented. 
Practical expedient 2 
(see 
13.2.2
)
For completed contracts that have variable 
consideration, an entity may use the transaction 
price at the date on which the contract was 
completed, rather than estimating the variable 
consideration amounts in each comparative 
reporting period. 
Practical expedient 3 
(see 
13.2.3
)
For modified contracts, an entity need not 
separately evaluate the effects of each of the 
contract modifications before the beginning of the 
earliest period presented. 
Instead, an entity may reflect the aggregate effect 
of all of the modifications that occur before the 
beginning of the earliest period presented in: 
– determining the transaction price; 
– identifying the satisfied and unsatisfied 
performance obligations; and 
– allocating the transaction price to the 
performance obligations.

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13 Effective date and transition | 329
13.2 Retrospective method
| 
Practical expedient
Description
Practical expedient 4 
(see 
13.2.4
)
For all periods presented before the date of initial 
application, an entity need not disclose the amount 
of the transaction price allocated to remaining 
performance obligations, nor an explanation of when 
it expects to recognise that amount as revenue.
IFRS 15.C6
If an entity applies one or more practical expedients, then it needs to do so 
consistently for all goods or services for all periods presented. In addition, the entity 
discloses the following information:
– the expedients that have been used; and
– a qualitative assessment of the estimated effect of applying each of these 
expedients, to the extent reasonably possible.
IFRS 15.C4
An entity is also required to comply with disclosure requirements for a change in 
accounting policy, including the amount of the adjustment to the financial statement 
line items and earnings per share amounts affected. However, an entity that adopts 
the standard retrospectively is not required to disclose the impact of the change 
in accounting policy on the financial statement line items and earnings per share 
amounts for the year of initial application.