Revenue – ifrs 15 handbook

7.2 
Costs of fulfilling a contract
Applicability of the cost capitalisation guidance in the revenue standard ....................................................................... 182
Judgement needed in determining whether cost capitalisation criteria are met ........................................................... 182
Judgement needed in determining whether to capitalise learning curve costs ............................................................. 182
Costs in excess of constrained transaction price ........................................................................................................... 183
Transportation services and costs ................................................................................................................................. 183
Back-end-loaded costs .................................................................................................................................................. 184
7.3 Amortisation
Amortisation period may need to include anticipated contracts .................................................................................... 188
Anticipated contracts included when determining whether practical expedient applies ................................................ 188
Judgement is required when contracts include recurring commissions ........................................................................ 189
Systematic amortisation for contract assets related to multiple performance obligations ............................................. 189
No correlation with the accounting for non-refundable up-front fees ............................................................................. 190
Presentation of amortisation costs may often depend on the nature of the entity and its industry ................................ 190
7.4 Impairment
Impairment model specifically for capitalised contract costs ........................................................................................ 192
Specific anticipated contracts are considered in impairment test .................................................................................. 193
Discounting may be relevant for long-term contracts .................................................................................................... 193