IFRS 15: Revenue from Contracts with customers

Question 1

What are the steps of the five step model?

Answer 1

1) Identify Contract (rights, obligations, combining & modification(distinct))
2) Identify the performance obligation (distinct or bundle)
3) Determine transaction price (Expected value vs Most likely amount)
4) Allocate transaction price to performance obligation
5) Recognise entity when performance obligation is satisfied. (Point in time or over time)