Revenue – ifrs 15 handbook

Definition of a completed contract
A ‘completed’ contract is one for which the entity has transferred all of the goods 
or services identified under the previous revenue requirements, including the 
standards on construction contracts and revenue, and related interpretations.
Example 3 – Applying practical expedient 1: Multiple contracts
Contract Manufacturer X has the following contracts with customers, each of 
which runs for eight months.
Contract
Starts
Completes
1
1 January 2017
31 August 2017
2
1 July 2016
28 February 2017
3
1 July 2017
28 February 2018
Contract timelines
Comparative years
Contract 1
Contract 2
Contract 3
1 January 2016
31 December 2016
31 December 2017
31 December 2018
Current year
X determines that practical expedient 1:
– applies to Contract 1, because Contract 1 begins and ends in an annual 
reporting period before the date of initial application;
– does not apply to Contract 2, because it is not completed within a single 
annual reporting period; and 
– does not apply to Contract 3, because Contract 3 is not completed under 
previous requirements by the date of initial application.

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332 | Revenue – IFRS 15 handbook
Example 4 – Applying practical expedient 1: Comparative period
Engineering Company E enters into a contract with Customer C to build a 
specialised asset for fixed consideration of 100,000, which begins on 1 August 
2017 and is completed in November 2017.
Under previous requirements, E recognised revenue on the date of delivery.