IFRS 15 Revenue Recognition Training Course

Participants can determine whether an arrangement creates an IFRS 15 contract and account for changes.

• Enforceable rights and obligations evaluated under written and customary contracts
• Approval, commitment and payment terms tested against IFRS 15 criteria
• Commercial substance assessed before accounting for promised goods or services
• Collectibility threshold evaluated using customer credit risk and consideration expectations
• Contract combination criteria applied to negotiated packages and interdependent promises
• Contract modifications classified as separate contracts, prospective changes or cumulative catch-ups

Participants can identify distinct performance obligations, series arrangements and material rights.

• Promised goods and services identified from explicit and implied commitments
• Distinct criteria tested through capable-of-being-distinct and separately-identifiable assessments
• Integration, modification and interdependence indicators used to assess combined performance obligations
• Series guidance applied to recurring services with consistent transfer patterns
• Customer options assessed for material rights and separate performance obligations
• Warranties separated between assurance coverage and service-type performance obligations

Participants can calculate transaction price and document estimates, constraints and financing conclusions.

• Fixed consideration reconciled to stated prices, rebates, credits and penalties
• Variable consideration estimated using expected value and most-likely-amount methods
• Constraint applied to variable amounts susceptible to significant revenue reversal
• Significant financing components assessed using timing, rates and practical expedient
• Non-cash consideration measured at fair value on contract inception
• Consideration payable to customers analysed as price reduction or service payment

Participants can allocate transaction price to performance obligations using IFRS 15 methods.

• Standalone selling prices estimated using observable prices, adjusted market assessment, expected cost margin
• Residual approach restricted to eligible variable or highly uncertain selling prices
• Transaction price allocated proportionately across performance obligations using relative standalone prices
• Discount allocation tested against observable evidence and IFRS 15 conditions
• Variable consideration allocated entirely when allocation objective and criteria are met
• Allocation schedules updated after contract modifications and cumulative catch-up adjustments

Participants can determine whether revenue is recognised over time or at a point in time.

• Control transfer assessed using legal title, possession, acceptance and payment indicators
• Point-in-time revenue recognised when customer obtains control of promised assets
• Over-time criteria tested using simultaneous benefits, customer control and alternative use
• Enforceable right to payment assessed for performance completed to date
• Output and input methods selected to measure progress faithfully
• Uninstalled materials, inefficiencies and wasted costs excluded from progress measures

Participants can assess common complex arrangements that require specific IFRS 15 judgments.

• Principal-versus-agent assessment based on control of specified goods or services
• Licences classified by functional or symbolic intellectual property characteristics
• Sales-based and usage-based royalties recognised under licence-specific exception
• Rights of return accounted for using refund liabilities and recovery assets
• Bill-and-hold arrangements tested against IFRS 15 control transfer requirements
• Consignment arrangements distinguished from completed sales through control indicators

Participants can account for contract acquisition costs, fulfilment costs and contract balances.

• Incremental costs of obtaining contracts assessed for capitalisation and practical expedient
• Costs to fulfil contracts tested against IFRS 15 asset criteria
• Capitalised contract costs amortised consistently with transfer of related goods
• Impairment testing performed before recognition of impairment under other Standards
• Contract assets distinguished from receivables using conditional rights to consideration
• Contract liabilities presented when consideration precedes transfer of goods or services

Participants can prepare IFRS 15 presentation and disclosure information supported by documented judgments.

• Revenue disaggregated into categories that explain economic factors and timing
• Contract balance movements reconciled to revenue, cash receipts and reclassifications
• Performance obligation disclosures prepared for timing, significant terms and remaining obligations
• Significant judgments documented for timing, transaction price and progress measurement
• Practical expedients disclosed with required qualitative and quantitative information
• IFRS 15 disclosures connected to IAS 1 material accounting policy information

Participants can translate IFRS 15 requirements into accounting policies, controls and reporting actions.

• Accounting policy decisions mapped to contract terms, data fields and controls
• Revenue process walkthroughs identify handoffs between sales, billing and finance
• Contract review checklist directs evidence gathering for significant IFRS 15 judgments
• ERP data requirements aligned with allocation, progress measurement and disclosures
• Month-end close procedures reconcile contract assets, liabilities and revenue journals
• Implementation action plan prioritises high-risk contracts, owners and reporting deadlines