Revenue – ifrs 15 handbook

(7)
Contract
costs
(8)
Contract
modifications
(9)
Licensing
(10)
Other application
issues
(11)
Presentation
(12)
Disclosure
(2)
Step 2 –
Identify
performance
obligations
(3)
Step 3 –
Determine
the transaction
price
(4)
Step 4 –
Allocate the
transaction
price
(5)
Step 5 –
Recognise
revenue
(1)
Step 1 –
Identify the
contract
Presentation and implementation
5-step model
Other recognition and measurement guidance
(6)
Scope
2 | Revenue – IFRS 15 handbook

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1 Step 1 – Identify the contract with a customer | 3
1.1 Criteria to determine whether a contract exists
| 
1 
Step 1 – Identify 
the contract with a 
customer
Overview
A contract with a customer is in the scope of the standard when the contract is 
legally enforceable and certain criteria are met. If the criteria are not met, then 
the contract does not exist for the purpose of applying the general model of 
the standard, and any consideration received from the customer is generally 
recognised as a deposit (liability). Contracts entered into at or near the same 
time with the same customer (or a related party of the customer) are combined 
and treated as a single contract when certain criteria are met.