Revenue – ifrs 15 handbook

2 
Step 2 – Identify the performance obligations in the contract
2.1 
Distinct goods or services
Applying the indicators will require judgement ................................................................................................................ 27
Applying Criterion 2 requires an entity to assess whether there is a transformative relationship between the two items 
being analysed ................................................................................................................................................................ 29
Separability of risks considered in determining whether goods or services are separately identifiable ........................... 29
Goods or services promised to a customer’s customer may be a performance obligation .............................................. 30
Contractual restrictions may not be determinative .......................................................................................................... 30
2.2 
Implied promises and administrative tasks
Only promises that transfer goods or services to the customer can be performance obligations .................................... 36
Set-up activities as administrative task ............................................................................................................................ 36

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356 | Revenue – IFRS 15 handbook
Providing end-user documentation is generally an administrative task ............................................................................ 36
Distinguishing between an administrative task and a promised good or service ............................................................ 36
2.3 
Series of distinct goods or services
No exemption from applying the series guidance ............................................................................................................ 41
Accounting for a series is intended to provide a simplification of the model .................................................................... 41
Determining the nature of the entity’s promise to the customer is the first step in applying the series guidance ............ 42
Identifying distinct goods or services as a series may affect the allocation of variable consideration .............................. 42
Not necessary for goods or services to be provided consecutively ................................................................................ 42