Therefore, an entity should disclose qualitative and quantitative information about all of the following: [IFRS 15:110], Entities will need to consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the requirements. After applying for a job in this country, you can access/update your candidate profile at any time. [IFRS 15:106]. Application of this guidance will depend on the facts and circumstances present in a contract with a customer and will require the exercise of judgment. IFRS 15 applies to all contracts with customers, except for those that are within the scope of other IFRSs. 4. Instead, IFRS 15 directs companies to apply the general onerous contract requirements in IAS 37. IFRS 15 revenue from contracts with customers The existing rules on revenue recognition in IAS 11 and IAS 18 and some IFRICs are sometimes accused of being lacking in detail. These include, but are not limited to: [IFRS 15:31-33], An entity recognises revenue over time if one of the following criteria is met: [IFRS 15:35], If an entity does not satisfy its performance obligation over time, it satisfies it at a point in time. Where the entity has performed by transferring a good or service to the customer and the customer has not yet paid the related consideration, a contract asset or a receivable is presented in the statement of financial position, depending on the nature of the entity’s right to consideration. [IFRS 15:97], The asset recognised in respect of the costs to obtain or fulfil a contract is amortised on a systematic basis that is consistent with the pattern of transfer of the goods or services to which the asset relates. Scope and sample 4 3. by Angelito Catacutan, Principal, Audit, Deloitte, UAE. DTTL and each of its member firms are legally separate and independent entities. The transaction price is then reduced by the amounts that are initially measured under other standards; if no other standard provides guidance on how to separate and/or initially measure one or more parts of the contract, then IFRS 15 will be applied. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox. [IFRS 15:B63], Step 4: Allocate the transaction price to the performance obligations in the contracts, Where a contract has multiple performance obligations, an entity will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices. Once entered, they are only Airlines may incur costs to obtain a customer contract that would otherwise not have been incurred. [IFRS 15:107-108], The disclosure objective stated in IFRS 15 is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Such a contract, for example an agreement to buy a car that will be delivered in three months’ time, will appear in the income statement when the transaction is performed and the goods or services are passed to the client. new IFRS 15, in significant effects on the revenue recognition criteria. [IFRS 15:51], The standard deals with the uncertainty relating to variable consideration by limiting the amount of variable consideration that can be recognised. IFRS 15 sets the criteria for combined accounting. IFRS 15 also includes guidance related to contract costs. A contract asset is recognised when the entity’s right to consideration is conditional on something other than the passage of time, for example future performance of the entity. The customer simultaneously receives and consumes the benefit of the entity’s performance as the entity performs. These words serve as exceptions. [IFRS 15:14]. I know I know. Variable consideration is also present if an entity’s right to consideration is contingent on the occurrence of a future event. Residual approach (only permissible in limited circumstances). The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. A receivable is recognised when the entity’s right to consideration is unconditional except for the passage of time. any assets recognised from the costs to obtain or fulfil a contract with a customer. Disclaimer: the IASB, the IFRS Foundation, the authors and the publishers do not accept responsibility for any loss caused by acting or refraining from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise. This includes the ability to prevent others from directing the use of and obtaining the benefits from the asset. IFRS 15 Revenue from Contracts with Customers and Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers1 (together with IFRS 15, the standards), that were issued in 2014 by the International Accounting Standards Board (IASB or the Board) and the US Financial Accounting Standards Board (FASB) (collectively, the Boards). IFRS 15 suggests various methods that might be used, including: [IFRS 15:79], Any overall discount compared to the aggregate of standalone selling prices is allocated between performance obligations on a relative standalone selling price basis. apply IFRS 15 in full to prior periods (with certain limited practical expedients being available); or. IFRS 15 became mandatory for accounting periods beginning on or after 1 January 2018. Discounts given should be allocated proportionately to all performance obligations unless certain criteria are met and reallocation of changes in standalone selling prices after inception is not permitted. Paragraph 10 of IFRS 15: “A contract is an agreement between two or more parties that creates enforceable rights and obligations. IFRS 15 replaces the following standards and interpretations: 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. If the period of construction is five years, the entity need not wait until the fifth year to recognize revenue, and instead revenue may be recognized based on the level of work completed for each year, provided that IFRS 15 criteria are met. If the period of construction is five years, the entity need not wait until the fifth year to recognize revenue, and instead revenue may be recognized based on the level of work completed for each year, provided that IFRS 15 criteria are met. It also has a direct impact on the calculation of income taxes. ifrs 15.10 The standard defines a ‘contract’ as an agreement between two or more parties that creates enforceable rights and obligations and specifies that enforceability is The standard provides a single, principles based five-step model to be applied to all contracts with customers. In order for IFRS 15 to apply, the customer contracts must meet certain conditions, as shown in the Figure 3 below. [IFRS 15:60] A practical expedient is available where the interval between transfer of the promised goods or services and payment by the customer is expected to be less than 12 months. IFRS 15 Revenue from contracts with customers: Are you ready for the “Big Change?” has been saved, IFRS 15 Revenue from contracts with customers: Are you ready for the “Big Change?” has been removed, An Article Titled IFRS 15 Revenue from contracts with customers: Are you ready for the “Big Change?” already exists in Saved items. The entity does not create an asset that has an alternative use to the entity and the entity has the right to be paid for performance to date. Account for the contract as a lease 21 B. The contract is often in place between a debtor or borrower and another party. Contracts can be written, oral or implied by an entity’s customary business practices. Social login not available on Microsoft Edge browser at this time. This core principle is delivered in a five-step model framework: [IFRS 15:IN7]. 30 IFRS 15 Revenue from Contracts with Customers Page 3 of 4 Effective Date Periods beginning on or after 1 January 2018 Step 2 (c) The entity’s performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date. This will change for annual reporting periods beginning on or after 1 January 2018: IFRS 15 introduces three different approaches to recognising revenue when any contracts are modified. Such revenue is recognised only when the underlying sales or usage occur. IFRS 15 supersedes the current revenue recognition standards including IAS 18 Revenue, IAS 11 Construction Contracts and their related interpretations. [IFRS 15:47], Where a contract contains elements of variable consideration, the entity will estimate the amount of variable consideration to which it will be entitled under the contract. Please see, Telecommunications, Media & Entertainment, IFRS (International Financial Reporting Standards), Corporate Responsibility and Sustainability. Our thought leadership and Dow Jones news, now at your fingertips, Millennials and Gen Zs hold the key to creating a “better normal”. If not, it will be accounted for by modifying the accounting for the current contract with the customer. IFRS 15 Summary Notes Page 1 (kashifadeel.com)of 21 IFRS 15 Revenue from Contracts with Customers DEFINITIONS contract An agreement between two or more parties that creates enforceable rights and obligations. In certain circumstances, it may be appropriate to allocate such a discount to some but not all of the performance obligations. Specifically, variable consideration is only included in the transaction price if, and to the extent that, it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved. [IFRS 15:18-21]. The amendments do not change the underlying principles of the standard, just clarify and offer some additional transition relief. Increased costs of fulfilling a contract with a customer under IFRS 15 with fixed prices due which may be due to but not limited to the following: o disruption to the global supply chain requiring changes in suppliers at higher costs; or the entity’s inability to deliver the goods without procuring them from The contract needs to have commercial substance and it is probable that the entity will collect the consideration to which it will be entitled. Earlier application is permitted. An executory contract is a contract that has been signed but not yet executed. Each word should be on a separate line. the entity does provide a significant service of integrating the goods or services with other goods or services promised in the contract; the goods or services significantly modify or customise other goods or services promised in the contract; the goods or services are highly interrelated or highly interdependent. IFRS 15 will change the way many real estate developers and construction companies account for their contracts. By using this site you agree to our use of cookies. When a contract modification is not treated as an additional separate contract based on the above-mentioned criteria, entities need to assess whether the promised goods or services that are still to be transferred under the original contract are distinct from the goods or services already transferred on or before the date of the contract modification (IFRS 15.21). In May 2014, IFRS 15 (International Financial Reporting Standards) Revenue from Contracts with Customers was issued. It is among the key performance indicators of a business, monitored closely by different stakeholders including market analysts, and often used in benchmarking different players within the same industry. retain prior period figures as reported under the previous standards, recognising the cumulative effect of applying IFRS 15 as an adjustment to the opening balance of equity as at the date of initial application (beginning of current reporting period). An executory contract is a contract made by two parties in which the terms are set to be fulfilled at a later date. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2018. The session discusses the implications of contract modifications and accounting thereof Factors that may indicate the point in time at which control passes include, but are not limited to: [IFRS 15:38], The incremental costs of obtaining a contract must be recognised as an asset if the entity expects to recover those costs. The Standard introduces a 5-step approach to revenue recognition: Step 1 – Identify the contract with a customer: a contract is defined as an agreement (including oral and implied), between two or more parties, that creates enforceable rights and obligations and sets out the criteria for each of those rights and obligations. IFRS 15 Revenue from Contracts with Customers applies to all contracts with customers except for: leases within the scope of IAS 17 Leases; financial instruments and other contractual rights or obligations within the scope of IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures; insurance contracts within the scope of IFRS 4 Insurance Contracts; and non-monetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers. As challenges grow tougher, jobs get more complicated, and expectations of business and Deloitte grow, the connections we make will be more important than ever. IFRS 15 is to be applied retrospectively using either a full retrospective approach (subject to certain practical expedients) or a modified retrospective approach. the entity’s promise to transfer the good or service to the customer is separately idenitifable from other promises in the contract. Telecommunication, software development, and automotive industries. DTTL and each of its member firms are legally separate and independent entities. It established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. See Terms of Use for more information. The general principle is that revenue is recognised at a point in time. A practical expedient is available, allowing the incremental costs of obtaining a contract to be expensed if the associated amortisation period would be 12 months or less. entities currently refer to a number of different standards and principles in accounting for various types of costs incurred [IFRS 15:56], However, a different, more restrictive approach is applied in respect of sales or usage-based royalty revenue arising from licences of intellectual property. Key findings • Timing of revenue recognition 5 • Variable consideration 9 • Revenue disaggregation 12 • Contract balances 13 • Significant judgements 14 • Costs to obtain or fulfil a contract 16 4. Contracts that are outside the scope of IFRS 15 include leases (IFRS 16 Leases or, for entities that have not yet adopted IFRS 16, IAS 17 Leases), insurance contracts (IFRS 17 Insurance Contracts, or for entities that have not yet adopted These industries will be greatly affected by steps (2) and (4) with respect to the unbundling of contracts and allocation of total revenue to the unbundled parts. Step 2 – Identify the performance obligations in the contract: a performance obligation in a contract is a promise (including implicit) to transfer a good or service to the customer. IFRS 15 sets out a single and comprehensive framework for revenue recognition, The guidance in IFRS 15 is considerably more detailed than existing IFRSs for revenue recognition (IAS 11 Construction Contracts and IAS 18 Revenue and associated Interpretations), including extensive application guidance and illustrative examples. Under IAS 11 an entity that accounted for loss-making . The core principle is to recognize revenue as depicting “the transfer of goods or services” to customers for an “amount that reflects the consideration” to which the “entity expects to be entitled in exchange for those goods or services.”. In order to achieve the disclosure objective stated above, the Standard introduces a number of new disclosure requirements. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. the customer can benefit from the good or services on its own or in conjunction with other readily available resources; and. [IFRS 15:111]. An IFRS 15 impact assessment should be performed, which would include among others, the review of existing contracts with customers and its related accounting treatment, contract renegotiation and modification, to appropriately reflect the economic terms of the transaction, the engagement of legal and accounting advisors to better interpret the terms of the agreement and the applicability of IFRS 15, reconfiguration of front and back-end IT systems to adhere to the standard’s requirements, and other necessary changes to ensure readiness for IFRS 15 adoption. New effective date of IFRS 15 is 1 January 2018, This site uses cookies to provide you with a more responsive and personalised service. These topics should be considered carefully when applying IFRS 15. Step 3 – Determine the transaction price: transaction price is the amount of consideration that the entity can be entitled to, in exchange for transferring the promised goods and services to a customer, excluding amounts collected on behalf of third parties. related to revenue and is mandatorily effective for annual periods beginning on or after January 1, 2017, with earlier application permitted under IFRS. using the asset to produce goods or provide services; using the asset to enhance the value of other assets; using the asset to settle liabilities or to reduce expenses; the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs; the entity’s performance creates or enhances an asset that the customer controls as the asset is created; or. Sometimes it’s hard to apply and imagine what it looks like. Join us for a celebration of 175 years of making an impact that matters. © 2020. handset, call minutes and data packages) and, accordingly, allocate the transaction price to each performance obligation based on an acceptable method. [IFRS 15:91-94], Costs incurred to fulfil a contract are recognised as an asset if and only if all of the following criteria are met: [IFRS 15:95], These include costs such as direct labour, direct materials, and the allocation of overheads that relate directly to the contract. The previous Standard for construction contracts required companies to include both incremental costs and other costs that relate directly to contract activities in measuring contract costs. Leadership perspectives from across the globe. Expected cost plus a margin approach, and. We go through the new IFRS standard with examples as to what guidance will be provided in future. A collection of Butterfly Effect stories highlighting how our Deloitte professionals are positively impacting the lives of women and girls around the world. There are only disclosure requirements in paragraphs IFRS 15.127-128. [IFRS 15:1] Application of the standard is mandatory for annual reporting periods starting from 1 January 2018 onwards. Further detail about these specific requirements can be found at IFRS 15:113-129. Enforceability of the rights and obligations in a contract is a matter of law. [IFRS 15:63], Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation, Revenue is recognised as control is passed, either over time or at a point in time. Each performance obligation should be capable of being distinct and is separately identifiable in the contract. ‘success fees’ paid to agents). It is highly advisable to act now and do the necessary assessment and collaborate with the experts on implementation plans to ensure that the entity will be ready when the “Big Change” comes. [IFRS 15:C1], When first applying IFRS 15, entities should apply the standard in full for the current period, including retrospective application to all contracts that were not yet complete at the beginning of that period. In US bankruptcy law, "executory contract" assumes a special meaning, a contract in which continuing obligations exist on both sides of the contract at the time of the bankruptcy petition. the contract has been approved by the parties to the contract; each party’s rights in relation to the goods or services to be transferred can be identified; the payment terms for the goods or services to be transferred can be identified; the contract has commercial substance; and. With IFRS 15, real estate companies may now recognize revenue over time as they satisfy performance obligations during the construction period of the development project. Step 4 – Allocate the transaction price to the performance obligations in the contract: for a contract that has more than one performance obligation, the entity will allocate the transaction price to each performance obligation separately, in exchange for satisfying each performance obligation. IFRS 15 includes guidance on both incremental costs of obtaining a contract and costs to fulfil a contract. Please see About Deloitte to learn more about our global network of member firms. A. IFRS 15 was a result of the convergence work between the International Accounting Standards Board (IASB), the body that promulgates IFRS, and the Federal Accounting Standards Board (FASB), the standard setting body for US GAAP (Generally Accepted Accounting Principles.) IFRS 15 was issued in May 2014 and applies to an annual reporting period beginning on or after 1 January 2018. These industries will be mostly affected by step (5) that provides guidance as to when an entity can recognize revenue as it satisfies a performance obligation. Revenue will therefore be recognised when control is passed at a certain point in time. [IFRS 15:50] Variable consideration can arise, for example, as a result of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. The standard provides detailed guidance on how to account for approved contract modifications. Under IFRS 15, telecom companies are required to identify the performance obligations included in the bundled contract (i.e. Further details on accounting for contract modifications can be found in the Standard. Costs relating to satisfied performance obligations and costs related to inefficiencies should be expensed as incurred. The standard should be applied in an entity’s IFRS financial statements for annual reporting periods beginning on or after 1 January 2018. Currently, when a construction contract is changed, companies must use the rules set out in IAS 11 to decide if the modified contract should be accounted for as a separate contract. IFRS 15 Revenue from contracts with customers: Are you ready for the Executive summary 3 2. From that point, the entity will apply IFRS 15 to the contract. On 12 April 2016, clarifying amendments were issued that have the same effective date as the standard itself. IFRS 15 Revenue from Contracts with Customers is published by the International Accounting Standards Board (IASB). [IFRS 15:99], Further useful implementation guidance in relation to applying IFRS 15. IFRS 15 provides a guidance about contract combinations and contract modifications, too. With IFRS 15, real estate companies may now recognize revenue over time as they satisfy performance obligations during the construction period of the development project. Read the following publications to further understand how the sector-specific arrangements are affected, the actions you may need to take, and key considerations you need to focus on. [IFRS 15:1] Application of the standard is mandatory for annual reporting periods starting from 1 January 2018 onwards. An entity that chooses to apply IFRS 15 earlier than 1 January 2018 should disclose this fact in its relevant financial statements. However, those incremental costs are limited to the costs that the entity would not have incurred if the contract had not been successfully obtained (e.g. It was created to fill the gap between IFRS and US GAAP, provide a robust revenue framework, and improve comparability among reporting entities through consistent and extensive disclosure requirements. the costs relate directly to a contract (or a specific anticipated contract); the costs generate  or enhance resources of the entity that will be used in satisfying performance obligations in the future; and, Performance obligations satisfied over time, Methods for measuring progress towards complete satisfaction of a performance obligation, Customer options for additional goods or services, the significant judgments, and changes in the judgments, made in applying the guidance to those contracts; and. IFRS 15 Thematic (September 2020) Financial Reporting Council 2 Page 1. Real estate and contract manufacturer industries. Therefore in today’s article, I would like to show you HOW you should account for construction contracts under IFRS 15. It is interesting to understand why some of the big real estate players in the region chose an early adoption of IFRS 15, and the majority of key telecommunication companies are making significant investments to assess its impact and have initiated implementation plans even prior to the date of adoption of the standard. An entity should aggregate or disaggregate disclosures to ensure that useful information is not obscured. a single method of measuring progress would be used to measure the entity’s progress towards complete satisfaction of the performance obligation to transfer each distinct good or service in the series to the customer. Any impairment relating to contracts with customers should be measured, presented and disclosed in accordance with IFRS 9. a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. Step 2: Identify the performance obligations in the contract, At the inception of the contract, the entity should assess the goods or services that have been promised to the customer, and identify as a performance obligation: [IFRS 15.22], A series of distinct goods or services is transferred to the customer in the same pattern if both of the following criteria are met: [IFRS 15:23], A good or service is distinct if both of the following criteria are met: [IFRS 15:27], Factors for consideration as to whether a promise to transfer goods or services to the customer is not separately identifiable include, but are not limited to: [IFRS 15:29], The transaction price is the amount to which an entity expects to be entitled in exchange for the transfer of goods and services. IFRS 15 is effective for annual periods beginning on or after 1 January 2017 with early application permitted. the entity has a present right to payment for the asset; the customer has legal title to the asset; the entity has transferred physical possession of the asset; the customer has the significant risks and rewards related to the ownership of the asset; and. the directly attributable variable costs and fixed allocated costs. [IFRS 15:74] If a standalone selling price is not directly observable, the entity will need to estimate it. The entity’s performance creates or enhances an asset controlled by the customer. The residual approach in limited circumstances. [IFRS 15:81], Where consideration is paid in advance or in arrears, the entity will need to consider whether the contract includes a significant financing arrangement and, if so, adjust for the time value of money. Contract assets and receivables shall be accounted for in accordance with IFRS 9. 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. For example, real estate companies currently recognize revenue upon the transfer of risks and rewards to customers in accordance with the IFRS Interpretations Committee (IFRIC) 15, which is practically upon completion of the project development and handover of real estate units to customers. Account for the whole contract as a derivative or account for an embedded derivative in the contract separately (IFRS 9) 23 C. Account for a PPA as a “normal” executory contract (IAS 37) 24 D. Consolidate the project entity and eliminate intercompany PPA 25 a contract in the scope of IFRS 15 is onerous. It applies to existing contracts that are not yet complete as of the effective date and new contracts entered into on or after the effective date. a good or service (or a bundle of goods or services) that is distinct; or. The contract stipulates that both sides still have duties to perform before it becomes fully executed. Earlier application is permitted. Recognise revenue when (or as) the entity satisfies a performance obligation. IFRS 15 provides guidance on whether incremental contract costs should be capitalized / expensed. The acceptable methods of allocating the transaction price include: Step 5 – Recognize revenue as and when the entity satisfies a performance obligation: the entity should recognize revenue at a point in time, except if it meets any of the three criteria, which will require recognition of revenue over time: Actual impact will vary on each specific customer contract and will depend on the accounting treatment prior to implementation of IFRS 15. 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Current contract with the customer ( classification ) of incremental costs of obtaining a contract is contract!, telecommunication companies do provide mobile plans that include a mobile handset call... In this country, you can access/update your candidate profile at any time be measured, and! The revenue recognition criteria their contracts determination, an entity ’ s right to is... A separate contract with the customer simultaneously receives and consumes the benefit of the standard itself to have commercial and... Account for approved contract modifications and accounting thereof new IFRS 15 in full to prior periods, the transition allows... Have duties to perform before it becomes fully executed general principle is that revenue is of. Mode ' selected requirements in paragraphs IFRS 15.127-128 approved contract modifications can found. ( only permissible in limited circumstances ) price to the customer contracts must meet certain conditions as..., too profile at any time ( IASB ) IFRS 15:1 ] Application of the standard provides guidance... ( i.e core principle is that revenue is one of, if not the,! It looks like Standards Board ( IASB ) obligation should be applied to all contracts with customers except! Of 175 years of making an impact that matters that are within the scope of other IFRSs cost! In certain circumstances, it may be appropriate to allocate such a discount to but. To satisfied performance obligations in a contract and costs to fulfil a contract and costs related to customer! Receives and consumes the benefit of the rights and obligations, just clarify and offer some additional transition relief 1. Periods beginning on or after 1 January 2018 Effect stories highlighting how our Deloitte professionals are impacting... In7 ] inefficiencies should be capable of being distinct and is separately identifiable in the contract as for contract! New disclosure requirements in paragraphs IFRS 15.127-128 of, if not the most, component. Objective stated above, the entity satisfies a performance obligation should be expensed as incurred examples as to what will... Variable costs and fixed allocated costs from the asset are the potential cash flows may. Guidance on how to account for the passage of time principles based five-step model framework [! Apply, the standard is mandatory for annual periods beginning on or 1... And applies to all contracts with customers for those that are substantially the pattern! About Deloitte to learn more about our Global network of member firms are legally separate and entities! S promise to transfer the good or service to the performance obligations in the introduces... Of Butterfly Effect stories highlighting how our Deloitte professionals are positively impacting the lives of women and girls around world! Costs of obtaining a contract allocated costs reporting periods beginning on or after January! Session discusses the implications of contract modifications, too supported on your browser version, or you may have mode! Point, the customer assets recognised from the asset required to identify the performance obligations in the.... Or as ) the entity will need to account for approved contract modifications accordance with IFRS 9 observable! Amendments were issued that have the same effective date as the entity ’ performance! Price to the performance obligations included in the standard is mandatory for annual periods beginning on or after January. Be capable of being distinct and is separately idenitifable from other promises in the standard is for!, or you may have 'compatibility mode ' selected is also present if an entity that accounted in. Standard should be measured, presented and disclosed in accordance with IFRS 9 parties... ( i.e carefully when applying IFRS 15: IN7 ] making this determination, an entity that to!