Revenue – ifrs 15 handbook

5.3 Measuring progress towards complete satisfaction of a performance obligation
Determining which measure of progress to apply is not a free choice ........................................................................... 134
Single method of measuring progress is used for a performance obligation ................................................................. 134
Certain sales agent arrangements may be over-time ..................................................................................................... 135
Measure of progress for stand-ready obligations is not always straight-line .................................................................. 135
Milestone method may not depict pattern of performance ........................................................................................... 136
A performance obligation may be partially satisfied before the contract is identified .................................................... 136
Borrowing costs when revenue is recognised over time ............................................................................................... 137
Design and production services – A units-of-delivery method or a units-of-production method may not be
appropriate ................................................................................................................................................................... 140
No guidance on the timing and pattern of the recognition of margin on uninstalled materials ....................................... 142
No detailed guidance on identifying inefficiencies and wasted materials ...................................................................... 143
Consideration does not need to be a fixed amount per unit to recognise revenue at the amount that the entity
has a right to invoice ...................................................................................................................................................... 143
Arrangements that include a contractual minimum ....................................................................................................... 144
Practical expedient may not be available when a contract includes a significant up-front fee ........................................ 145
Rebates, credits and refunds generally preclude application of the practical expedient ................................................ 145