IFRS 15 - Revenue from Contracts with Customers

Question 1

revenue

Answer 1

Income arising in the course of an entity’s ordinary activities

Question 2

customer

Answer 2

A party that has contracted to obtain goods/services that are the output of an entity’s ordinary activities in exchange for consideration

Question 3

5-step process for revenue recognition

Answer 3

Step 1:
-Identify the contract with a customer

Step 2:
-Identify the performance obligations in the contract

Step 3:
-Determine the transaction price

Step 4:
-Allocate the transaction price to the performance obligations in the contract

Step 5:
-Recognise revenue when a performance obligation is satisfied