Revenue – ifrs 15 handbook

require consideration
If an entity applies the new standard on a full retrospective basis, then all 
contracts with customers are potentially open – even if they are considered 
closed under the previous requirements. 
For example, entities with contracts that included after-sale services accounted 
for as sales incentives are required to re-analyse those contracts to: 
– determine whether the after-sale service is a performance obligation under 
the new standard; and 
– assess whether any performance obligations identified have been satisfied.
Cost and income tax line items may also require adjustment
When making adjustments, the entity may also be required to adjust some 
cost and income tax balances in the financial statements if they are affected 
by the new requirements. For example, the entity is required under the new 
standard to capitalise and amortise the costs of acquiring a contract, but under 
previous requirements it had expensed those costs as they were incurred. 
The capitalisation of costs under the new standard may create temporary 
differences or affect other judgements and therefore impact deferred 
tax balances.
Regulatory requirements need to be considered
Entities that elect the retrospective method may also need to consider the 
effect on any additional historical data that forms part of, or accompanies, the 
financial statements or that is filed in accordance with regulatory requirements.

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13 Effective date and transition | 331
13.2 Retrospective method
| 
13.2.1 
Practical expedient 1 – Contracts that are started and 
completed in the same annual reporting period
IFRS 15.C5(a)
Under practical expedient 1, an entity need not restate completed contracts that: 
– begin and end within the same annual reporting period; or
– are completed contracts at the beginning of the earliest period presented. 
IFRS 15.C2(b)