Page 237 - F3 -FA Integrated Workbook STUDENT 2018-19

Preparing basic financial statements

IFRS 15 Revenue from contracts with

customers

7.1 Definition

IFRS 15 defines revenue as ‘income arising in the course of an entity’s ordinary
activities’ (IFRS 15, Appendix A). (use COPAR to remember steps)

Step 1 – Identify the Contract

Step 2 – Identify the separate performance Obligations

Step 3 – Determine the transaction Price

Step 4 – Allocate the transaction price to the performance
obligations

Step 5 – Recognise revenue as or when a performance
obligation is satisfied

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