Revenue – ifrs 15 handbook

13.4 Consequential amendments to other IFRS requirements
Example 13 – Consequential amendments ................................................................................................................... 341
13.5 First-time adoption
Example 14 – First-time adopter of IFRS ....................................................................................................................... 343

---

© 2019 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
Index of KPMG insights | 355
Index of KPMG insights
1 
Step 1 – Identify the contract with a customer
1.1
Criteria to determine whether a contract exists
Assessment focuses on enforceability, not form of the contract ....................................................................................... 6
Collectability is only a gating question ............................................................................................................................... 6
Collectability is assessed based on the amount that the entity expects to receive in exchange for goods or services ...... 6
Judgement is required to differentiate between a collectability issue and a price concession........................................... 7
Collectability threshold may be assessed using information derived at the portfolio level ................................................. 7
Collectability is reassessed only when there is a significant deterioration in the customer’s credit-worthiness ................ 8
Collectability assessment required for contracts with a significant financing component ................................................. 8
Fiscal funding clauses may affect the assessment of whether a contract exists ............................................................... 8
Enforceable rights and obligations for an expired contract when the entity continues to provide services ........................ 9
Free trial period offers........................................................................................................................................................ 9
Success-based fee arrangements ................................................................................................................................... 10
Contracting practices may need to be evaluated by customer class ................................................................................ 10
Two definitions of a contract exist in IFRS ........................................................................................................................11
Minimum purchase requirements ................................................................................................................................... 12
Additional steps may be required to create legally enforceable rights and obligations ..................................................... 13
Purchase orders under the same framework agreement may be inter-related ................................................................ 13