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IFRS 15 — Revenue from Contracts with Customers


The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.


The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  This core principle is delivered in a five-step model framework:


·         Identify the contract(s) with a customer

·         Identify the performance obligations in the contract

·         Determine the transaction price

·         Allocate the transaction price to the performance obligations in the contract

·         Recognize revenue when (or as) the entity satisfies a performance obligation.


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