Insights into IFRS 15 – Determining the transaction price
Learn how to determine the transaction price under Step 3 of IFRS 15's five-step revenue recognition model, including key considerations for customer contracts and financial reporting.
07 Feb 2022 2 min read
The 2022 edition of the publication has been updated for changes to International Financial Reporting Standards (IFRS) that were published between 1 January 2021 and 31 December 2021.
The publication now covers 31 March 2021, 30 June 2021, 30 September 2021, 31 December 2021 and 31 March 2022 financial year ends.
The effective dates table in the article has been colour coded to help entities planning for a specific financial reporting year end, and identifies:
Where a change is not yet mandatorily effective for a particular year end, it may still be possible for an entity to adopt it early (depending on local legislation and the requirements of the particular change in concern).
Where a change has been made but an entity is yet to apply it, certain disclosures are required to be made under IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Disclosures required include the fact that the new or amended Standard or Interpretation has been issued but it has not yet been applied and known or reasonably estimable information relevant to assessing its possible impact on the financial statements in the period of initial application.
For each change covered in the publication, we have included a box on its commercial implications. These sections focus on two questions:
A traffic light system indicates our assessment of the answers to these questions.
Learn how to determine the transaction price under Step 3 of IFRS 15's five-step revenue recognition model, including key considerations for customer contracts and financial reporting.
Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees, and other suppliers of goods and services.
Share-based payment transactions with non-employees involve compensating parties other than employees, such as suppliers of goods and services.
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