Revenue – ifrs 15 handbook

6.4 
Portfolio approach
Example 9 – Portfolio approach applied to costs ............................................................................................................ 171
7 
Contract costs
7.1 
Costs of obtaining a contract
Example 1 – Costs incurred to obtain a contract: Sales commissions to employees ......................................................174
Example 2 – Costs incurred to obtain a contract: Sales commissions to employees vs advertising ............................... 177
Example 3 – Costs incurred to obtain a contract: Sales commissions vs wages to sales staff ....................................... 177
Example 4 – Commission paid on renewals after the initial contract is obtained............................................................ 178
Example 5 – Dealer commission with claw-back provision ............................................................................................ 178
Example 6 – Commission plan with tiered thresholds: Cumulative effect ..................................................................... 179
7.2 
Costs of fulfilling a contract
Example 7 – Set-up costs: Managed data centre ........................................................................................................... 181
Example 8 – Training costs expensed as incurred .......................................................................................................... 184
Example 9 – Set-up costs: Customised part for carmaker ............................................................................................. 185
Example 10 – Mobilisation costs ................................................................................................................................... 186
Example 11 – Reconfiguration costs .............................................................................................................................. 186