Revenue – ifrs 15 handbook

Understand
nature, amount,
timing and
uncertainty of
revenue and
cash flows
Significant
judgements
(see 12.1.4)
Costs to obtain or
fulfil a contract
(see 12.1.5)
Performance
obligations
(see 12.1.3)
Contract
balances
(see 12.1.2)
Disaggregation
of revenue
(see 12.1.1)
See our 
Guide to annual financial statements – Illustrative disclosures 2018
and 
Guide to annual financial statements – IFRS 15 Revenue supplement
for example 
disclosures.
Revenue is a gross number
IFRS 15.A
Some entities may present detailed information about their performance in the 
financial statements and other parts of their annual report on a net basis – e.g. 
banks often present detailed information about commission and fee income for 
the purposes of their segment reporting on a net basis, although they act as a 
principal in those transactions. 
Revenue from contracts with customers is a gross inflow. Therefore, an entity 
cannot use net figures to meet the disclosure requirements in the revenue 
standard.

---

© 2019 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
318 | Revenue – IFRS 15 handbook
12.1.1 
Disaggregation of revenue
IFRS 15.114, B89
The standard requires the disaggregation of revenue from contracts with customers 
into categories that depict how the nature, amount, timing and uncertainty of 
revenue and cash flows are affected by economic factors, and includes examples of 
these categories.
Example
categories
Geography
Type of good or
service
Contract duration
Timing of transfer
of good or service
Sales channels
Market or type
of customer
Type of contract
IFRS 15.115, B87–B88
An entity also discloses the relationship between the disaggregated revenue and 
the entity’s segment disclosures.
In determining these categories, an entity considers how revenue is disaggregated in:
a. disclosures presented outside the financial statements: e.g. earnings releases, 
annual reports or investor presentations;
b. information reviewed by the chief operating decision maker for evaluating the 
financial performance of operating segments; and
c. other information similar to (a) and (b) that is used by the entity or users of 
the entity’s financial statements to evaluate performance or make resource 
allocation decisions.